Axis Bank is going to buy the Indian retail banking business of Citigroup Inc. in a deal worth $ 2.5 billion (about Rs 18,900 crore). According to a report in Bloomberg, talks about the deal are in their final stages and it could be announced publicly in the next few weeks. Banking regulator RBI will also have to take approval for this deal.
The report quoted sources as saying that the deal would also include a cash component of a little less than $2 billion, which would be for consumer business liabilities.
A source in the report said that keeping in mind the job security and competition concerns of the existing employees of Citigroup, Axis Bank has been selected as the buyer. Another source said that Axis Bank would need around six months to merge its consumer business in the country with Citigroup.
Negotiations regarding this deal are definitely in their last stages. However, like all deals, this one too may get stuck or get delayed due to unknown reasons in its last phase. Axis Bank and Citigroup had not commented on this till the time of writing this news.
Citigroup is an American bank. Its CEO, Jane Fraser, is currently focusing on the bank’s restructuring plan to consolidate its retail banking business from around 13 countries across Asia and Europe and focus on high-growth segments such as wealth management. The proposed deal to sell the retail banking business in India is part of this plan.