Axis Financial institution has emerged because the frontrunner to purchase Citi’s client enterprise in India, which is being valued at round $1.5 billion in a deliberate deal that is more likely to occur this month, in accordance with two sources with direct data of the matter.
One other Indian lender, Kotak Mahindra Financial institution continues to be within the race however has submitted a decrease bid than Axis Financial institution so ranks second in Citi’s order of desire, the sources instructed Reuters.
Axis Financial institution and Kotak Mahindra Financial institution didn’t instantly reply to requests for remark.
“We proceed to maneuver ahead with our course of with respect to our India client enterprise sale in accordance with our broader strategic refresh,” stated Citi India in response to an electronic mail question on the deal standing.
Wall Road large Citi stated final yr that it will exit its client franchises in 13 markets, together with India, because it refocuses on its extra profitable institutional and wealth administration companies. Its Indian client banking enterprise contains bank cards, house loans and retail banking.
Buying the belongings would strengthen the high-end bank card and mortgage companies of Axis Financial institution, India’s third largest personal lender, analysts at ICICI Direct stated in a be aware.
“The acquisition of Citi’s India retail enterprise would additional assist Axis Financial institution to develop their attain and create extra alternatives,” they added.
Citi has been in India for many years and was among the many first financial institution to introduce Indians to bank cards in 1987.
It had a portfolio of two.57 million bank cards within the nation as of November, in accordance with the Indian central financial institution, whereas Axis Financial institution’s card portfolio exceeded 7.9 million. Despite the fact that Axis has extra playing cards, Citi reported increased spend per card.
Citi’s whole retail mortgage e-book in India stood at 216 billion rupees ($2.91 billion) for 2021, Systematix Institutional Equities stated in a report final month.
This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
Supply: Live Mint