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ICICI Securities Report
Axis Bank Ltd. shells out a purchase consideration of Rs 123 billion for Citibank's India consumer business to acquire:
loan portfolio of Rs 274 billion (accretion of 4% to its advance base) across credit cards, mortgage, personal and ready credit loans, asset backed finance and small business banking;
2.5 million credit card customer base (addition of 31% to its base);
granular deposit base of Rs 502 billion, of which 81% is current account and savings account (increase of 7% in its deposit base and 12% to its CASA);
assets under management of Rs 1.1 trillion across Citi's Wealth and private banking products to augment Axis Bank's Burgundy brand.
The implied equity value of Rs 158 billion (including notional capital allocation of Rs 34.5 billion) suggests the deal is to be consummated at 18.7 times normalised CY20 earnings and four times book value.
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