Axis Bank Ltd's acquisition of Citibank's India consumer business on track

Axis Bank Ltd had announced about the purchase of the Citibank's India Consumer Business from Citibank N.A. (acting through its branch in India) ("CBNA") and the NBFC Consumer Business from Citicorp Finance (India) Limited ("CFIL"), as going concerns, without values being assigned to individual assets and liabilities to either business, subject to fulfilment of specific conditions and obtaining requisite approvals. Axis Bank had executed, inter alia, business transfer agreements with CBNA ("CBNA BTA") and CFIL ("CFIL BTA") on March 30, 2022.

The bank had also announced that subject to the satisfactory completion of the customary and contractual conditions in accordance with the provisions of the CBNA BTA and CFIL BTA, respectively, the transactions were anticipated to be completed within 12 months or such other date as may be mutually agreed.

Both Parties have made progress on integration and have obtained other requisite customer consents and approvals, as applicable. Based on the progress made till date, we estimate a reasonable possibility of completion of the acquisition by March 1, 2023, which is within the timeline of 12 months indicated earlier by us, subject to satisfactory completion of the customary and contractual conditions in accordance with the provisions of the CBNA BTA and CFIL BTA, as referred above.

Shares of Axis Bank Limited was last trading in BSE at Rs. 845.15 as compared to the previous close of Rs. 833.15. The total number of shares traded during the day was 93005 in over 4221 trades.

The stock hit an intraday high of Rs. 848.40 and intraday low of 830.05. The net turnover during the day was Rs. 77981763.00.

Source : Equity Bulls

Keywords

AxisBank INE238A01034 Acquisition Citibank IndiaConsumerBusiness Ontrack