Axis Bank proposed to acquire Citibank's India consumer business from Citibank NA and NBFC consumer business. The acquisition is subject to customary closing conditions, including receipt of regulatory approvals.
- The total purchase consideration will be up to Rs. 12,325 crore (in all cash deal). The integration process will be completed in Q4FY23. CET1 is expected to decline ~230 bps to 13%
- Additional deposits of Rs. 50200 crore (of which 81% is CASA) are expected to be added in Axis Bank's balance sheet raising deposits by 7% and overall advances by 4%. Wealth AUM of Rs. 1,10,900 crore to be acquired from Citi Wealth & Private Banking
Key triggers for future price performance
- High yielding credit card acquisition to aid margins. Acquisition is in the right direction. Synergies are expected to play out from FY25E
- Access to affluent customer base and accretion of wealth AUM to aid cross sell & fee based income
For details, click on the link below: Link to the report
Shares of Axis Bank Limited was last trading in BSE at Rs. 774.45 as compared to the previous close of Rs. 760.65. The total number of shares traded during the day was 223851 in over 6459 trades.
The stock hit an intraday high of Rs. 775.70 and intraday low of 755.20. The net turnover during the day was Rs. 171328933.00.