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Axis Bank - Systematix Analyses Impact Of The Likely Acquisition Of Citi Bank's India Retail Assets

Axis Bank - Systematix Analyses Impact Of The Likely Acquisition Of Citi Bank's India Retail Assets

An Axis Bank Ltd. brochure sits inside a bank branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
An Axis Bank Ltd. brochure sits inside a bank branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

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Systematix Research Report

With reference to CNBC-TV18’s news flash on December 20, 2021, among Axis Bank Ltd., IndusInd Bank Ltd. and Kotak Mahindra Bank Ltd., the former is being reported as a front-runner to acquire Citi Bank’s India retail business assets. There is no confirmation from Axis Bank’s management on the exchange filings yet.

Citi Bank’s total loan book and retail loan book are at Rs 693 billion and Rs 216 billion, respectively; its retail assets would contribute to ~3.4% of Axis Bank’s total loan book, subject to acquisition.

Axis Bank reported loan growth of 7.5% YoY in FY21 and 1.2% in H1 FY22; we build-in 11% YoY credit growth in FY22. Therefore, inorganic growth led by the acquisition of Citi Bank’s retail assets would aid overall growth.

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Systematix Axis Bank - Flash Note.pdf

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