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Axis Bank to buy Citigroup’s $2.5bn India retail unit

February 15, 2022

Axis Bank to buy Citigroup’s $2.5bn India retail unit

Axis Bank Ltd. is nearing a deal to buy Citigroup Inc. India retail banking business in a transaction that could be valued at about $2.5 billion, individuals familiar with the matter said.

An understanding for the consumer unit might be declared when the following few weeks and is contingent on approval from the Reserve Bank of India, individuals said, asking not to be identified as the information is private. The deal would include a cash component or less $2 billion, accounting for the consumer business’ liabilities, individuals said.

The lender emerged as the buyer after beating out rivals, with factors, for example, job security for current Citigroup employees and competition concerns being considered, one of the people said. Axis Bank will require around a half year to merge its consumer business in the country with Citigroup’s, the people said.

For Citigroup Chief Executive Officer Jane Fraser, the planned India retail sale is essential for a restructuring to simplify on the U.S. lender, get rid of its retail banking activities in 13 nations across Asia and Europe, and spotlight on high-growth businesses such as wealth management. Axis Bank, India’s third-biggest private sector lender, has been attempting to help retail loans to tap pent-up demand after the initial two waves of Covid-19.

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