Citigroup has agreed to sell its consumer banking business in India to Axis Bank for $1.6 billion, the latest step in Chief Executive Officer Jane Fraser`s push to simplify the bank.

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The sale follows a months-long auction process and includes a credit-card business with around 2.6 million cardholders, the sixth-largest in the country.

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It is part of Citi CEO Jane Fraser`s plan to revamp the bank by exiting retail banking operations in 13 countries and focusing on its more lucrative institutional and wealth management businesses.

The sale excludes Citi`s institutional client businesses in India.

"As we move forward with this transaction, India remains a key institutional market for Citi," Peter Babej, Citi Asia Pacific CEO, said. "In line with our broader strategic repositioning, we will continue to support our institutional clients in this core market and across APAC."

The transaction is expected to close in the first half of calendar year 2023 and there will be no immediate impact on the services to the customers of Citi`s consumer businesses in India, the U.S. bank said.

Around 3,600 Citi employees will be transferred to Axis through the deal, and Citi expects the release of about $800 million of allocated tangible common equity after the deal.