Axis Bank to buyout Citibank's retail business in India

Citibank is exiting India's retail banking business as it sells its consumer unit to Axis Bank in an $1.6 billion all cash deal.

Axis Bank emerged as the lead buyer after beating rivals like Kotak and gaining control of Citibank's 35 branches across India with 2.5 million account holders. Further, as part of the deal, Citibank will continue to service the customers during the integration period so services are not hindered.

Axis will also take on 3600 employees from the Wall Street giant but the deal does not include it's institutional business.

Citibank has been present in India for decades and was in fact one of the first banks to introduce credit cards into the Indian market.

It is not just India where Citi is bidding goodbye, last year Citibank had said that it will exit its consumer franchises in 13 markets and refocus on its more lucrative institutional and wealth management businesses.