American banking giant Citi is all set to exit its retail banking business in India.
And apparently leading the race to acquire this business is Axis Bank.
Per CNBCTV18, Axis is likely to be the winning bidder for Citi's retail banking assets here with a deal of ~$1.5 billion.
Of this, $300-400 million could be milestone-based payments, which will be made in the future only if some key criteria are met.
While neither bank has confirmed this, the journalists at CNBCTV18 seem pretty confident.
Earlier it was reported that it'd be a 3 horse race between Kotak, IndusInd and Axis Bank to but out Citi's India retail business which involves over 2.5 million customers and more than 1.2 million bank accounts.
Interestingly, Citi's India business has been profitable. They have a Rs 68,000 crore loan book, of which Rs 28k crores were to retail borrowers. These were mainly credit cards and mortgages.
Citibank is actually the 6th largest card issuer in India with a 4%+ market share. As per CLSA's estimates, Citibank could have a credit card book of approximately Rs 9,000 crore.
They have 35 branches in India and employ over 4,000 people.
The decision to exit India was made by Citi's global management team, when they decided to exit 13 countries including Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam