Axis Bank Limited is going to enter into a deal to buy the Indian retail banking business of Citigroup Inc. The value of this transaction is expected to be around $2.5 billion.
Axis Bank ,Axis Bank, Limited Citigroup (CitiGroup) Inc.’s Indian Retail Banking (Retail Banking) Going to make a deal to buy the business. According to a Bloomberg report, the value of this transaction is expected to be around $ 2.5 billion. People having knowledge of that matter have told. The agreement for the consumer unit can be announced in the next few weeks and will be approved by the Reserve Bank of India. (RBI) Hope to get approval soon. The cash share in the deal will be less than $2 billion, which will be the liability of the customers’ business.
The Indian bank has emerged as a buyer beating its rivals, with job security and competition concerns for existing Citigroup employees being cited as reasons. According to the report, a person told that Axis Bank will need about six months time to merge its consumer business with Citigroup in the country. While negotiations have gained momentum, there may be delays in the agreement. Representatives of Axis Bank and Citigroup are yet to comment on the matter.
Citigroup will separate from banking in many countries
For Citigroup chief executive officer Jane Fraser, its retail sales in India are part of a restructuring plan to make the US bank easier. For the bank, the focus is on high-growth businesses such as wealth management, apart from retail banking operations in 13 countries across Asia and Europe. Axis Bank, the country’s third largest private bank, has been trying to encourage retail loans to take advantage of the increased demand after the first two waves of the corona pandemic.
Mumbai-based Axis Bank said in January that its quarterly profits had grown more than three times on the back of strong earnings from lending. Along with this, it has also performed well in non-core business like fees and trading. The reason behind this is the revival in consumer demand due to the betterment of the corona virus epidemic.
Let us tell you that the profit of Axis Bank has increased 3 times from last quarter to this quarter. In the October-December quarter, the profit of Axis Bank has seen a jump of 225 per cent. Between October-December 2020 to October-December 2021, this profit of the bank has reached Rs 3,614 crore. Many big reasons are being given for this, the most important of which is the big boom in loans. This growth has been similar in the retail and corporate loan segments.