New Delhi: Private sector Axis Bank seems keen to buy the business of Citi Bank. It has made the biggest bid to buy the consumer business of Citibank.
US-based Citibank had in April announced its exit from its consumer bank business in India as part of a global strategy.
Businesses from retail banking to credit cards
Citi Bank provides services such as credit cards, retail banking, debt and wealth management in the country. The bank has 35 branches in the country and around 4,000 people are involved in the consumer bank business.
The valuation of the bank’s business is about two billion dollars.
According to sources, the valuation of the bank’s business could be around $2 billion (Rs 13,000 crore). The final valuation of the bank will be done on the basis of other parameters including deposit volume, customers, asset volume, and liabilities after getting all regulatory approvals, he said.
Benefit from winning this bid from Axis Bank
Sources said that with Axis Bank winning this bid, it will expand its book account size and lead to significant growth in the retail sector. E-mails sent to Axis Bank and Citibank regarding the proposed deal did not elicit any response at this time.
Other banks are also in the race to buy the business
HDFC Bank and Kotak Mahindra Bank are also in competition to buy the retail business of Citi Bank. DBS Bank is also keen to buy the retail business of the bank. This deal can be done in cash.
Kotak Mahindra Bank and IndusInd Bank were also involved in this race. Kotak Mahindra Bank was expected to be the top contender, but Axis Bank came up with a better offer. This deal can be worth two billion dollars in both the banks.