Sumary of Five banks may bid for Citi’s India consumer businesses:
- Although the US lender is seeking a valuation in excess of $2 billion, the bids could be more circumspect after Citi lost significant market share in its retail and credit card books, one of the executives cited above said.
- “While Citi’s retail franchise remains excellent, the book has shrunk.
- It has lost significant market share and due to the exit plans, it has not been able to focus on enhancing the existing book and adding quality customers,” said an official involved in the bidding process.
- Plus, it is also expected to receive bids from global suitors that may be looking to pick up consumer assets in several markets the bank has exited,” the official said.
- “We are pursuing consumer franchise sales with a focus on optimising results for our people, our clients and our shareholders,” a spokesperson for Citi India said in a mailed response to ET’s queries.
- “Conversations with potential buyers continue in these markets, including India, with strong interest from a broad range of bidders.
- Citibank, under its first woman CEO Jane Fraser, decided to exit retail businesses in 13 markets to conserve capital and focus on higher yielding revenue streams.
- The Indian retail basket includes credit cards, deposit accounts, wealth management and a mortgage portfolio.