Private bank Axis is all set to acquire the consumer business of Citibank for $1.6 billion in an all cash deal.
The transaction comprises the sale of the consumer banking businesses of Citibank India, which includes credit cards, retail banking, wealth management and consumer loans. It also includes the sale of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.
All the staff under Citi will be retained under Axis. Axis bank calls the acquisition a ‘healthy fit’ for the company as it would allow them to access the large customer group of Citibank.
Highlight by Aman Agarwal.