Axis Bank emerges as highest bidder for Citis consumer banking business
American banking major Citibank in April announced its plan to exit from the consumer banking business in India as part of a global strategy.
Private sector Axis Bank has emerged as the highest bidder to buy Citi's consumer banking business, according to sources.
American banking major Citibank in April announced its plan to exit from the consumer banking business in India as part of a global strategy.
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The business comprises credit cards, retail banking, home loans and wealth management. The bank has 35 branches in the country and employs about 4,000 people in the consumer banking business.
According to the sources, the valuation could be around USD 2 billion (about Rs 13,000 crore).
The final valuation will be linked to the number of variables including the quantum of deposits, customers, the quantum of assets and liabilities moving from one franchise to another once all regulatory clearances come through, the sources added.
Once approved, the sources added that the balance sheet size of Axis Bank will expand and the retail segment will witness a significant jump.
Mails sent to Axis Bank and Citi on the proposed deal remained unanswered.
Citi had entered India in 1902 and started the consumer banking business in 1985.
Apart from the institutional banking business, it will continue to focus on offshoring or global business support rendered from centres in Mumbai, Pune, Bengaluru, Chennai and Gurugram.
Citi had reported a post-tax net profit of Rs 4,912 crore for 2019-20 as against Rs 4,185 crore in the previous financial year.
For the fiscal year ended March 31, 2021, Citibank India reported a net profit of Rs 4,093 crore, down from Rs 4,918 crore in the preceding fiscal year. It has 35 branches across the country.
As of March 31, 2021, the bank's concentration of non-performing assets (NPAs) stood at Rs 143.34 crore, involving exposure to top-four NPA (non-performing asset) accounts. While, the gross NPAs stood at Rs 990.94 crore.
Its retail bank serves people across the spectrum, including the salaried and the high net worth individuals, through dedicated offerings.
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