The proposals were introduced on Friday.
City is expected to begin bilateral talks and announce a formal winner in the next couple of months. No bidders have offered stock, and all have submitted cash bids. The first two are the most aggressive bidders and are at the forefront.
of singapore dbs, ICICI bank and HDFC The people cited above said that the bank had evaluated the prospects of the deal, but ultimately did not bid.
Buyers want to consolidate credit card, mortgage business
Businesses include credit cards, retail banking, home loans and wealth management. The bank has 35 branches in the country and employs 4,000 people in the consumer banking business. It contributes one third to the overall business but in terms of profitability, corporate banking is more than 80%. in totality, City BankThe market share of Advances and Deposits of the Indian unit of the Company was 0.6% and 1.1%, respectively.
A City spokesman declined to comment on the speculation.
“The remainder of our strategy in fresh markets, we are pursuing consumer franchise sales with a focus on optimal results for our people, our customers and our shareholders,” the person said. “Negotiations are on with potential buyers in all these markets, including India, with strong interest from a wide range of bidders.”
Axis Bank declined to comment. Spokespersons of Kotak Mahindra Bank and IndusInd did not respond to queries.
Experts said potential buyers are looking to strengthen the high-end credit card and mortgage business through acquisitions. Citi entered India in 1902 and started consumer banking business in 1985. Even though the card business dropped to sixth place – with a 2% CAGR over the past decade – average card spend remained higher than the industry as a whole. As of last August, Citibank catered to 2.9 million retail customers with 1.2 million bank accounts.
“For large private banks, Citi’s retail business (primarily credit cards and mortgages) adds only 3-6% to their loans and deposits,” said Ashish Gupta, head of research at Credit Suisse. “Kotak and IndusInd are more significant (13-20%) for Bank, and its 2.6 million card base is a key asset that will more than double their current card base. Its savings franchise is also lucrative and among Kotak and 50 Adds 30%. % to IIB savings deposits. The full benefit of the acquisition will depend on what the cross-sell acquirer can achieve on Citi’s 2.5 million premium retail liability customers.”