New Delhi: One of the largest private banks, the Axis Bank is about to buy Citigroup Inc's India retail banking business which could be valued at about $2.5 billion, several media outlet reported.
It is expected that in this regard, an agreement will surface in the coming weeks and is contingent on approval of Reserve bank of India (RBI), the reports quoted people familiar with the matter.
According to them, the deal would include a cash component of less than $2 billion, accounting for the consumer business's liabilities.
Notably, the Axis bank has emerged as the buyer after beating out rivals, with factors such as job security for current Citigroup employees and competition concerns being taken into account, the reports informed.
According to the reports, the bank will need around six months to merge with its consumer business in the country with Citigroup's.
Interestingly, for Citigroup Chief Executive Officer Jane Fraser, the planned India retail sale is part of a restructuring to simplify the U.S. lender, do away with its retail banking operations in 13 countries across Asia and Europe, and focus on high-growth businesses such as wealth management.
Axis Bank, India's third largest private sector lender, has been trying to boost retail loans to tap pent-up demand after the first two waves of Covid-19.
The Mumbai-based, Axis Bank, had said in January that quarterly profit more than tripled on robust earnings from lending and its non-core business including fees and trading, as the easing of the coronavirus pandemic helped a revival in consumer demand.
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