Axis Bank- Citibank Deal
Citigroup has announced that Axis Bank will be acquiring Citibank’s India consumer business for an amount of USD 1.6 billion in an all-cash deal. This transaction will be including Citibank India’s consumer banking businesses, which include retail banking, credit cards, consumer loans, and wealth management.
- This transaction will also be including the sale of Citibank’s non-banking financial company consumer business, Citicorp Finance (India) Limited, which comprises a financing business that is asset-backed and also includes construction equipment and commercial vehicle loans, and a portfolio of personal loans.
- Citi’s institutional client businesses in India are however excluded from this deal.
- Citibank India’s consumer business employees, around 3,600, will be transferred to Axis after the completion of this deal.
- This deal has been announced after almost a year since Citibank’s announcement regarding its exit from consumer franchises in 13 markets, including India.
- Citibank will be focusing on wealth and institutional management businesses.
- Citibank’s Indian consumer banking business includes home loans, credit cards, and retail banking.
What is an all-cash deal?
It is an exchange of assets or a single asset for cash and no other monetary means, such as exchange of stocks or financing are used. The most common way of settling all-cash deal are wire transfers or check and the physical form of cash is generally avoided.
Category: Economy & Banking Current Affairs - 2024