Private sector lender Axis Bank is set to acquire Citigroup’s retail banking business in India and a deal is expected to be announced soon, sources said on Wednesday.
According to the sources, the deal, which will be valued at $2.5 billion (about Rs 18,000 crore), will be subject to regulatory approvals.
In April 2021, major US bank Citigroup announced its intention to withdraw from the consumer banking business in India as part of its global strategy.
The business includes 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 retail banking sector.
Once the agreement is reached, the sources said that the size of Axis Bank’s balance sheet will increase and the retail segment will see a significant jump.
An email sent to Axis Bank seeking comment on the proposed deal elicited no immediate response.
Earlier this month, Axis Bank said it had not yet made a decision on buying Citigroup’s retail business in India.
Citigroup entered India in 1902 and launched the retail banking industry in 1985.
In addition to institutional banking, Citigroup in India will continue to focus on outsourcing or global business support provided from centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)