Axis Bank to acquire Citi's consumer business in India

Private sector lender Axis Bank has agreed to acquire Citibank's consumer business in India including Citi’s credit cards, retail banking, wealth management and consumer loan business for $1.62 billion in an all-cash deal.

The transaction also includes the sale of the consumer business of Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.

Around 3,600 Citi employees will be transferred to Axis through the deal, and Citi expects the release of about $800 million of allocated tangible common equity after the deal. The transaction is expected to close in the first half of 2023 subject to requisite regulatory approvals.

The bank helps corporations raise capital (debt and equity) and provides financing solutions, besides working with them on risk management and transaction banking. Citi’s Banking, Capital Markets and Advisory Group is acting as exclusive financial advisor to Citi in respect of the transaction.

Peter Babej, Citi Asia Pacific CEO, said, “Our announced transaction with Axis, a leader in Indian financial services, represents an important milestone for our franchise and offers an excellent opportunity to our consumer banking colleagues in India. As we move forward with this transaction, India remains a key institutional market for Citi. In line with our broader strategic repositioning, we will continue to support our institutional clients in this core market and across APAC, delivering the full power of our global network to enable their growth.”