Private sector lender Axis Bank is close to acquiring Citigroup's retail banking business in India and a deal is likely to be announced soon, sources said on Wednesday.
According to the sources, the deal, to be valued at USD 2.5 billion (about Rs 18,000 crore), will be subject to regulatory approvals. In April 2021, American banking major Citigroup announced its plan to exit from the consumer banking business in India as part of its global strategy. 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. Once the deal gets the approvals, the sources said the balance sheet size of Axis Bank will expand and the retail segment will witness a significant jump. An e-mail sent to Axis Bank seeking comments on the proposed deal did not elicit any response immediately.
Earlier this month, Axis Bank said it was yet to take a decision on the purchase of Citigroup's India retail business. Citigroup had entered India in 1902 and started the consumer banking business in 1985. Apart from the institutional banking business, Citigroup in India will continue to focus on offshoring or global business support rendered from centres in Mumbai, Pune, Bengaluru, Chennai and Gurugram.