Axis Bank - Citibank Deal - Accretive, Synergistic, At Reasonable Valuation: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Axis Bank Ltd. shells out a purchase consideration of Rs 123 billion for Citibank’s India consumer business to acquire: loan portfolio of Rs 274 billion (accretion of 4% to its advance base) across credit cards, mortgage, personal and ready credit loans, asset backed finance and small business banking;2.5 million credit card customer base (addition of 31% to its base);granular deposit base of Rs 502 billion, of which 81% is current account and savings account (increase of 7% in its deposit base and 12% to its CASA);assets under management of Rs 1.1 trillion across Citi’s Wealth and private banking products to augment Axis Bank’s Burgundy brand. The implied equity value of Rs 158 billion (including notional capital allocation of Rs 34.5 billion) suggests the deal is to be consummated at 18.7 times normalised CY20 earnings and four times book value..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Axis Bank - Citibank Deal - Accretive, Synergistic, At Reasonable Valuation: ICICI Securities

Axis Bank - Citibank Deal - Accretive, Synergistic, At Reasonable Valuation: ICICI Securities

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