New Delhi: Private Sector axis Bank According to sources, Citi has emerged as the highest bidder to buy consumer banking business.
US banking major Citibank in April announced its plan to exit the consumer banking business in India as part of a global strategy.
Businesses include 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.
According to sources, the valuation could be around $2 billion (about Rs 13,000 crore).
Sources said the final valuation would be linked to the number of variables such as deposit volume, clients, asset volume and liabilities moving from one franchise to another after getting all regulatory approvals.
Once approved, sources said the size of Axis Bank’s balance sheet will expand and there will be a significant jump in the retail sector.
Mails sent to Axis Bank and Citi on the proposed deal remained unanswered.
Citi entered India in 1902 and started consumer banking business in 1985.
In addition to the institutional banking business, it will continue to focus on offshoring or global business support provided from centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.
Citi had reported a net profit after tax of Rs 4,912 crore for 2019-20 as against Rs 4,185 crore in the previous fiscal.
For the financial year ended 31st March, 2021, Citibank India It reported a net profit of Rs 4,093 crore, down from Rs 4,918 crore in the previous fiscal. It has 35 branches across the country.
As on March 31, 2021, the bank’s concentration of non-performing assets (NPAs) stood at Rs 143.34 crore, which included exposure to the top-four NPA (non-performing assets) accounts. Whereas, the gross NPA stood at Rs 990.94 crore.
Its retail bank serves people across the spectrum including salaried and high net worth individuals through dedicated offerings.
US banking major Citibank in April announced its plan to exit the consumer banking business in India as part of a global strategy.
Businesses include 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.
According to sources, the valuation could be around $2 billion (about Rs 13,000 crore).
Sources said the final valuation would be linked to the number of variables such as deposit volume, clients, asset volume and liabilities moving from one franchise to another after getting all regulatory approvals.
Once approved, sources said the size of Axis Bank’s balance sheet will expand and there will be a significant jump in the retail sector.
Mails sent to Axis Bank and Citi on the proposed deal remained unanswered.
Citi entered India in 1902 and started consumer banking business in 1985.
In addition to the institutional banking business, it will continue to focus on offshoring or global business support provided from centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.
Citi had reported a net profit after tax of Rs 4,912 crore for 2019-20 as against Rs 4,185 crore in the previous fiscal.
For the financial year ended 31st March, 2021, Citibank India It reported a net profit of Rs 4,093 crore, down from Rs 4,918 crore in the previous fiscal. It has 35 branches across the country.
As on March 31, 2021, the bank’s concentration of non-performing assets (NPAs) stood at Rs 143.34 crore, which included exposure to the top-four NPA (non-performing assets) accounts. Whereas, the gross NPA stood at Rs 990.94 crore.
Its retail bank serves people across the spectrum including salaried and high net worth individuals through dedicated offerings.
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