The Economic Times daily newspaper is available online now.

    Axis Bank shares jump nearly 2% after Citi deal

    Synopsis

    Axis Bank on Wednesday said it will acquire US-based Citi's consumer business in India for Rs 12,325 crore in one of the largest deals in the Indian financial services space, which will help it close the gap with larger peers like ICICI Bank and HDFC Bank.

    Axis Bank shares jump nearly 2% after Citi deal
    New Delhi: Shares of Axis Bank gained nearly 2 per cent in morning trade on Thursday, after the company said it will acquire US-based Citi's consumer business in India for Rs 12,325 crore. The stock jumped 1.82 per cent to Rs 763.90 on the BSE.

    At the NSE, it gained 1.67 per cent to Rs 763.

    Axis Bank on Wednesday said it will acquire US-based Citi's consumer business in India for Rs 12,325 crore in one of the largest deals in the Indian financial services space, which will help it close the gap with larger peers like ICICI Bank and HDFC Bank.

    The two lenders signed a definitive agreement for the sale, which will involve the third largest private lender taking over Citi's credit cards, personal loans and wealth management businesses that are focused on the affluent segment.

    Regulatory approvals are expected in nine months, after which the payment will be made and a complex integration process will begin.

    "Axis Bank has grown organically all these years and has scaled well. But our aspirations are bigger. This deal gives us that strategic thrust to close the gap between us and some of our peers," its chief executive and managing director Amitabh Chaudhry told reporters.

    Apart from a consideration of Rs 12,325 crore or USD 1.6 billion, which will be paid using the balance sheet strength, the deal also involves an equity requirement of Rs 3,450 crore for the loan book of over Rs 27,400 crore which will get transferred and also a payout of up to Rs 1,500 crore in integration cost, which will be paid by Axis to Citi for servicing the business till the merger gets complete.



    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in