Axis Bank will acquire Citi’s consumer businesses in India for approximately $1.6 billion, Citi has announced in a press release.

The transaction comprises sale of the consumer banking businesses of Citibank India, which includes credit cards, retail banking, wealth management and consumer loans, the statement has added.

“Axis was selected by Citi following an extensive and competitive auction process,” the global banking behemoth has said.

It has added that the transaction also includes the sale of the consumer business of Citi’s non-banking financial company (NBFC) Citicorp Finance (India), comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio. 

However, the deal excludes Citi’s institutional client businesses in India. “Citi remains committed and focused on serving institutional clients in India and globally,” the statement has added. 

Following the completion of the transaction, approximately 3,600 Citi employees working in the consumer businesses in India will be transferred to Axis Bank. Citigroup has said that the transaction is expected to close in the first half of calendar year 2023, subject to requisite regulatory approvals. 

Citi has been present in India since 1902 and has served large and mid-size corporate bodies, financial institutions and multinational companies operating in the country. It serves over 2,000 international corporations in India and more than 300 large domestic companies and financial institutions. It helps corporations raise capital (debt and equity) and provides financing solutions, besides working with them on risk management and transaction banking, the press release has noted.