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Citi deal can perk up Axis Bank's prospects, but there are challenges too

Cheaper-than-expected valuation for the above-average customer franchise is positive; extracting synergies, smooth integration among key challenges

Axis Bank
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Axis Bank (Photo: Bloomberg)

Devangshu Datta Mumbai
The Axis Bank–Citi deal has caused a buzz in the banking sector. Axis Bank is acquiring Citi’s consumer business in India for an all-cash consideration of around $1.6 billion. This includes over 2.85 million retail customers and 1.2 million loan accounts alongside credit cards, home loans, wealth management, etc. The transaction includes the sale of the consumer business of Citi’s non-banking financial company (NBFC) Citicorp Finance (India), comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio. Citi will retain its institutional business.

The deal includes the transfer of 3,600-odd

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First Published: Mar 30 2022 | 9:10 PM IST

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