Citi India’s $2 billion retail business worth tops in Asia: Report
According to a report by the Australian bank, going by SBI Card’s valuation, Citi’s 2.7 million cards would imply a figure of $2.7 billion. “This is above the top end of our valuation… To the the extent that a single buyer is able to purchase multiple businesses at once, we would expect some sort of valuation discount in order to expedite Citi’s exit,” the report said.
“As the deal does not come with bank licences nor distribution, the sale is likely to take place in fragments. Across the region, there are very few banks who have the requisite footprint to bolt-on all of Citi’s various retail businesses,” the report said.
The report identifies DBS, OCBC and StanChart as possible cross-border buyers, but is uncertain about HSBC.
Besides the 10 Asia-Pacific markets, Citi announced its plans to exit consumer banking from three other markets — the Philippines, Poland and Russia. A Bloomberg report quoted a Citi official stating that the bank was looking to sell its entire operations in India in one go.
“We have always been open to exploring sensible bolt-on opportunities in markets where we have a consumer banking franchise and where we can overlay our digital capabilities to serve our customers better,” a representative for DBS told Bloomberg.
Watch Citibank India’s $2 billion retail business worth tops in Asia, says new report