Citi will offload its India retail banking unit to the country’s third largest private sector lender, Axis Bank.
Citi has agreed to sell its retail unit to Axis Bank for about $1.6 billion cash, according to a statement, which includes credit cards, retail banking, wealth management and consumer loans.
Also included in the deal is Citi’s non-banking asset-backed financing business – Citicorp Finance (India) – alongside 3,600 Citi employees who will join Axis Bank upon completion of the process by the first half of 2023.
«As we move forward with this transaction, India remains a key institutional market for Citi,» said Citi’s APAC chief executive Peter Babej.
Top Bidder
Axis Bank was reportedly the most preferred bidder for Citi’s retail unit in January followed by Indian rival Kotak Mahindra in second place.
Other bidders that were previously interested in the same deal included DBS, Standard Chartered and Yes Bank. SBI Cards and Payment Services were also reportedly eyeing the standalone credit card portfolio.
The sale is part of broader plans at Citi to exit 13 consumer markets where it lacks scale to sharpen its strategic focus on wealth management in fewer markets.
