Any change in the strategic importance of India market will be a rating sensitivity factor.Ĭitibank India has comfortable capitalisation, with Tier I and overall capital adequacy ratio (under Basel III) of 15.7% and 17.4%, and Net Worth of Rs 29,895 crore as on Ma(14.4%, 16.2% and Rs 28,273 crore as on March 31, 2021). CRISIL Ratings believe that Citibank India will continue to benefit from the funding, strategic and management support from its head office. While the exit will reduce the size and scale of India branch balance sheet, the ICG business will continue to be run through the current branch setup only. On t he liability side, approximately Rs 39,900 crore of retail deposits were transferred to Axis Bank. Along with this, the wealth management and private banking businesses of Citibank India also move d to Axis Bank. Axis Bank paid a lumpsum consideration of Rs 11,543 crore to Citibank in cash for the acquisition.Īs a part of the acquisition, Axis Bank acquire d the consumer banking business of Citibank comprising of the credit card business, mortgage business and other retail lending which together constitute around Rs 2 3 000 crore of the overall advances.
(Citibank India) announced the completion of the sale of Citibank India’s consumer banking business (including credit cards, retail banking, wealth management and mortgage loans) on a going concern basis by way of a slump sale to Axis Bank Limited (Axis Bank). The bank’s lending portfolio is well-diversified, with a balance between retail and corporate advan ces. Citibank India is one of the largest foreign banks operating in India, with reported asset size of Rs 233,265 crore as on March 31, 2022. The bank and its subsidiaries have successfully leveraged the Citibank brand and offer a wide range of products and services to its clients in the areas of financing and fee-based activities, including wholesale banking, investment banking, retail banking, and capital market offerings.
Well-diversified financial services provider amongst the largest foreign banks in IndiaĬitibank India is a diversified financial services player with a widespread presence across corporate, SME and retail segments. Citibank India is likely to continue to benefit from the funding, strategic, and management supp ort from its head office. The rating on Citibank India continue to be based on the counterparty credit rating of A+/Stable/A-1’ by S&P Global on Citibank.
WEALTH TRACKER CITIGOLD DIVERSIFICATION INDEX CITIGOLD DRIVERS
Key Rating Drivers & Detailed DescriptionĮxpectation o f strong support from Citibank Any change in the strategic importance of India market will be a rating sensitivity factor. While the exit will reduce the size and scale of India branch balance sheet, the ICG business will continue to be run through the current bran ch setup only. While the sale of the consumer banking business would lead to a high yield retail business moving out, the same would be offset by the im provement in the cost of deposits and operating expenses which should support the earnings profile of the bank. The bank will focus on its Institutional Clients Group (ICG) business vertical in these markets. The transaction is in line with the global strategy announced by the bank on April 15, 2021, wherein it was to exit its consumer banking busi ness in 13 countries. On the liability side, approximately Rs 39,900 crore of retail deposits have be en transferred to Axis Bank. Along with this, the wealth management and private banking businesses of Citibank India also move d to Axis B ank.
Axis Bank paid a lumpsum consideration of Rs 11,543 crore to Citibank in cash for the acquisition.Īs a part of the acquisition, Axis Bank acquire d the consumer banking business of Citibank comp rising of credit card business, mortgage business and other retail lending which together constitute around Rs 2 3 000 crore of the overall advances. (Citibank India) announced the completion of the sale of Citibank India’s consumer banking business (including credit cards, retail banking, wealth management and mortgage loans) on a going concern basi s by way of a slump sale to Axis Bank Limited (Axis Bank). Citibank is a subsidiary of Citigroup Inc (Citigroup, outstanding counterparty foreign currency rating of ‘ BBB+/Stable/A-2’ from S&P Global). CRISIL’ s ratings continue to be based on the counterparty credit ratings of ‘A+/Stable/A-1’ by S&P Global Ratings on Citibank. CRISIL Ratings has reaffirmed its ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on the debt instruments of Citibank N.A.’s (Citibank’s) India operations (Citibank India).
0 kommentar(er)
