Some of the top league Indian banks will now be bidding for Citibank India’s consumer business.
The big names include HDFC Bank and Kotak Mahindra Bank as well!
Major Banks In India To Bid For Citibank India’s Consumer Business
The deadline for bidding is October 26, and HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, and DBS India will all be bidding for the business.
Citibank India is reportedly seeking more than $2 billion and the bidders will most likely give Citi a lot of significant market share in its retail and credit card businesses. The US based banking major delivers $1 billion in annual revenues.
As per reports, HDFC Bank and Kotak Mahindra Bank will be considered front runners for the business.
A person close to the development has stated that Citi’s retail franchise remains excellent but it lost significant market share due to exit plans.
Whereas, Citibank has stated, “We are pursuing consumer franchise sales with a focus on optimising results for our people, our clients and our shareholders.Conversations with potential buyers continue in these markets, including India, with strong interest from a broad range of bidders.”
We had recently reported that Citibank NA is on its way to close down its consumer banking division. The business is apparently facing a decline, primarily due to the lockdown and the pandemic that caused it.
Citibank NA is the largest foreign bank in India and yet, the bank is all set to follow the footsteps of the several other overseas lenders who have had to shut down their business in India over the past few years. New reports have confirmed that the bank is planning to shut down its consumer banking unit in India as well.
Citibank To Divest Some Units In Retail Banking?
Recently, there was news that the bank is planning to divest some units in retail banking in the Asia Pacific region, including those in South Korea, Thailand, the Philippines, and Australia.
Apparently, this decision to shut down the consumer banking unit is majorly based on the recent COVID-19 pandemic and the lockdown that was imposed to curb its spreading. The business of Citibank reportedly saw a decline because of this and stress in retail portfolios has also been observed.
Citibank has around 2.9 million retail customers, 1.2 million bank accounts and about 2.2 million credit card accounts.
The bank holds around 6% share in credit card spends and 5.87% market share in digital payments. About 26% of the foreign portfolio investment comes through Citibank India. The bank employs 19000 people across 35 branches in India.
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