Axis Bank- Citibank Deal

April 1, 2022

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.

Overview:

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.

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