Axis Bank Ltd. is close to acquiring Citigroup Inc.'s retail banking business in India, and a deal is likely to be announced soon, according to people aware of the transaction.
The Axis-Citi deal, to be valued at $2.5 billion (about Rs 18,000 crore), will be subject to regulatory approvals, the people told PTI.
The US-based investment bank had in April 2021 announced its plan to exit its consumer-facing business in India as part of its global strategy. This includes credit cards, retail banking, home loans and wealth management. Apart from the institutional banking business, Citigroup in India will now focus on offshoring or global business support rendered from centres in Mumbai, Pune, Bengaluru, Chennai and Gurugram.
Once the deal gets the approvals, the balance sheet size of Axis Bank will expand and the retail segment will witness a significant jump, the people said.
An email sent to Axis Bank seeking comments on the proposed deal did not elicit a response immediately. The private sector lender had earlier this month said that 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. The bank has 35 branches in the country and employs about 4,000 people in the consumer-banking space.
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