Mumbai: The bank’s axis has emerged as a Frontrunner to buy Citi Consumer Business in India, which is valued at around $ 1.5 billion in a planned agreement that might occur this month, according to two sources with direct knowledge of this issue.
The Mahindra Bank box is still in a race but has made a lower bid than Axis Bank so it ranks second in the order of Citi preferences, these sources to Reuters.
Axis Bank and Mahindra Bank Box do not immediately respond to a comment request.
“We continue to move forward with our process with respect to the sale of our Indian consumer business in accordance with our broader strategic refresher,” Citi India said in response to email requests on the status of the agreement.
Wall Street Giant Citi said last year it would come out of consumer franchises in 13 markets, including India, because it focused on the business of institutional management and more profitable wealth.
Indian Consumer Banking Business consists of credit cards, home loans and retail banking.
Obtaining assets will strengthen high-end credit cards and axis bank mortgage business, third largest private lenders in India, analyst at ICICI Direct said in a note.
“The acquisition of the Indian Citi retail business will further help the Axis Bank to expand their reach and create more opportunities,” he added.
Citi has been in India for decades and is among the first banks to introduce India to a credit card in 1987.
It has a 2.57 million credit card portfolio in the country in November, according to the Indian central card portfolio, while the Axis Bank card portfolio .
exceeding 7.9 million.
Even though the axis has more cards, Citi reports higher expenses per card.
The total book of Citi retail loans in India reached Rs 21,600 Crore ($ 2.91 billion) for 2021, said the institutional equity Systematix in a report last month.