Mumbai – Citi today announced that it has reached an agreement with Axis Bank Limited (Axis) for the sale of Citi’s consumer businesses in India. Axis was selected by Citi following an extensive and competitive bidding process.

The transaction includes the sale of Citibank India’s consumer banking businesses, which include credit cards, retail banking, wealth management and consumer loans. The transaction also includes the sale of Citi’s non-banking consumer business, Citicorp Finance (India) Limited, which includes the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as a portfolio of loans personal. Excludes Citi’s institutional client businesses in India; Citi remains committed and focused on serving institutional clients in India and globally.

The transaction will also include approximately 3,600 Citi employees supporting consumer businesses in India, who will be transferred to Axis upon completion of the proposed transaction. Axis will pay Citi approximately $1.6 billion in cash for the acquisition of the consumer business, subject to customary closing adjustments.

The transaction is expected to close in the first half of calendar year 2023 subject to required regulatory approvals. This announcement is just the beginning of the process, and while there will be a transition, Citi will ensure it is done as seamlessly as possible, with reasonable notice. There will be no immediate impact on customer service for Citi’s client businesses in India.

Upon closing, Citi expects the transaction to result in the issuance of approximately $800 million of outstanding common equity. As previously announced, Citi’s global exit from its consumer banking businesses in 13 markets across Asia and EMEA is expected to generate approximately $7 billion of common equity allocated over time.

Peter Babej, CEO of Citi Asia Pacific, said, “Our announced transaction with Axis, a leader in Indian financial services, represents an important milestone for our business and presents a great opportunity for our consumer banking peers in India. This, India remains a key institutional market for Citi. Along with realigning our broader strategies, we will continue to support our institutional clients in this key market and across APAC, leveraging the full power of our global network to enable their growth.

Citi has been present in India since 1902 and is the bank of choice for large and medium sized corporates, financial institutions and international companies operating in the country. It has the market leading Commercial Bank in India which is the largest in APAC. Citi serves more than 2000 international corporations in India and 300+ large domestic companies and financial institutions. It helps organizations raise capital (debt and equity) and provide financing solutions, besides working with them on risk management and banking operations. Citi is actively engaged in various government initiatives, including working with our clients to channel foreign capital through FDI investments under the PLI (Performance Linked Incentive) program of the Government of India, as well as FII/FPI flows into the country.

“We are very pleased with this outcome for our colleagues and customers. Axis is committed to building its consumer banking business in India and is backed by a strong market presence. We believe Axis will provide our employees with the best environment to build their careers and will meet all the financial needs of our customers,” said Titi Cole, CEO of Legacy Franchises at Citi.

“This is a positive outcome for our employees and our priority has been securing their future. We remain committed to contributing to India’s growth and development as we expand our presence through our institutional businesses and our community initiatives. Citi will also continue to leverage India’s rich talent pool in Technology, Operations, Analytics, Finance and allied functional areas through its network of Citi Solution Centers which are located in five cities in India and support our global businesses,” Citi India said. Executive Director Ashu Khullar.

With a physical presence in 95 countries, Citi works closely with global clients, attracting FDI and FPI flows and showcasing India as a global supply chain hub, while facilitating investments across the country across asset classes. Citi is a partner in its clients’ digital and ESG journeys with customized solutions, which support integration and sustainability.

As a leading investment bank for over 15 years in India, in 2021 alone, Citi has helped raise over $29 billion of capital in over 40 equity and debt transactions and provided strategic M&A advice on seven announced transactions, which is over $5 billion. Citi also handles 8% of India’s trade flow and 5% of the country’s electronic payment flow. Citi helps foreign investors tap into the Indian market – managing nearly a third of their operations in India as a custodian.

Citi’s Banking, Capital Markets and Advisory Group is acting as exclusive financial advisor to Citi in connection with the transaction.



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