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Axis Bank-Citi deal: Brokerages list key positives & negatives for the bank

The affluent credit card segment was seen as a gap in Axis Bank's customer positioning and will fit in the lender's retail portfolio.

Axis Bank
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Axis Bank (Photo: Bloomberg)

Nikita Vashisht New Delhi
Axis Bank, on Wednesday, made a historic acquisition of Citibank N.A. and Citicorp Finance's entire consumer business in India, gaining instant access to the affluent customer segment. The segment, analysts said, was seen as a gap in Axis Bank's customer positioning and will fit in the lender's retail portfolio.

The all-cash transaction of around $1.6 billion (Rs 12,300 crore) values the deal at 18.7x CY20 Adjusted PAT of Rs 840 crore for consumer finance business. The bank has to pay another Rs 1,500 crore as integration cost spread over two years from date of closing of transaction. The deal is

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First Published: Mar 31 2022 | 10:56 AM IST

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