Citigroup to sell consumer businesses in India to Axis Bank for $1.6 billion in cash

Citigroup Inc. said Wednesday it has reached an agreement to sell its India consumer banking businesses to Axis Bank Ltd. for $1.6 billion in cash. The deal is expected to close in the first half of 2023 and to include 3,600 employees who will transfer to Axis Bank. The businesses involved include credit cards, retail banking, wealth management and consumer loans. It also includes the sale of the consumer business of Citi's non-banking financial company, Citicorp Finance (India) Limited, composed of the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio. The deal does not include Citi's institutional client businesses. Citigroup expects the deal to release about $800 million of allocated tangible common equity, and to contribute along with the sale of other consumer banking franchises to about $7 billion of allocated tangible common equity over time. Citigroup first opened in India in 1902. The bank's shares were down 0.2% premarket and have lost 22.6% in the last 12 months, while the Dow Jones Industrial Average has gained 6.4% and the S&P 500 has gained 16.6%.

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