Private sector lender Axis Bank is close to acquire Citigroup’s retail banking business in India and a deal is likely to be announced soon, sources said on Wednesday.
According to sources, the deal worth $ 2.5 billion (about Rs 18,000 crore) will be subject to regulatory approval.
In April 2021, US banking major Citigroup announced its plans to exit the consumer banking business in India as part of its 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.
Once the deal is cleared, sources said the size of Axis Bank’s balance sheet will expand and there will be a significant jump in the retail sector.
An e-mail sent to Axis Bank seeking comment on the proposed deal did not elicit an immediate response.
Earlier this month, Axis Bank said it is yet to take a decision on the purchase of Citigroup’s India retail business.
Citigroup entered India in 1902 and started consumer banking business in 1985.
In addition to the institutional banking business, Citigroup in India will continue to focus on offshoring or global business support provided from centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.