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Citigroup to sell India consumer biz to Axis Bank for $1.6 B

Press Release   BSE Disclosure  

US-headquartered Citigroup is to sell its consumer business in India to Axis Bank Ltd for about USD 1.6 Billion (INR 12,325 crore) in cash. The sale comprises credit cards, retail banking, wealth management and consumer loans. The transaction also includes the sale of the consumer business of Citi's non-banking finance company, Citicorp Finance (India) Ltd, comprising commercial vehicle & construction equipment loans and personal loans portfolio. The sale excludes Citi's institutional client businesses in India. About 3,600 Citi employees supporting the consumer businesses in India will transfer to Axis upon completion of the proposed transaction. Axis Bank will gain access to ~30 lakh unique customers, 7 offices, 21 branches and 499 ATMs across 18 cities. Axis Bank's Cards balance sheet will grow by 57% with an additional ~25 lakh Citibank cards, making it one of the top 3 cards businesses in the country. The deal will add about 7% to Axis Bank's deposit base (with about 12% increase in CASA) and around 4% increase in advances. Post the acquisition, Axis Bank will have ~2.85 crore Savings Accounts, 2.3 lakh+ “Burgundy” (wealth management) customers and 1.06 crore cards. Axis Capital and Credit Suisse acted as financial advisors to Axis Bank for the transaction, and Khaitan & Co. as the legal advisor. In addition, the bank was supported by PricewaterhouseCoopers and Boston Consulting Group. Citi's Banking, Capital Markets and Advisory Group is acting as exclusive financial advisor to Citi for the transaction.