Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Did Axis overpay in Citi deal? Analysts think so.

Date: 05-08-2022
Subject: Did Axis overpay in Citi deal? Analysts think so
With Citibank's credit card spends share falling to 3.9% in June from 4.8% a year ago, analysts said Axis Bank NSE 1.23 % may have overpaid for the Citi retail assets deal.

During the same period, Axis Bank's market share has increased to 9.3% from 8.3%, according to Reserve Bank of India data.
"We remain concerned about the steady decline in spends market share for Citibank over the past 12 months as this has implications for Axis Bank in our view," said Suresh Ganapathy, associate director, Macquarie Capital.

In March, Axis Bank said it had acquired Citi's India retail business, comprising largely its credit cards portfolio, mortgages and other retail segments, totalling about ₹27,400 crore. The lender will also acquire Citi's deposits of ₹50,200 crore.

While Axis Bank will pay ₹12,300 crore directly as the price of businesses, the capital investment of ₹3,500 crore and integration cost of ₹1,500 crore adds up to a total of ₹17,300 crore ($2.3 billion).

Citi's credit card business has seen a continuous decline in spend market share to 4% from 10% over the past four years, along with a decline in spend-per-card to ₹4,000 from nearly ₹16,000. In June, the monthly spends per card declined further for Citi, with a relatively low-ticket size of ₹3,400 per card.

The total card-in-force for the US lender declined to 2.56 million in June from 2.6 million a year ago. During the same period, Axis Bank's total credit cards increased to 9.7 million from 7.13 million.

"The Citi performance is trending in line with the assumptions we had made at the time of investment," Axis Bank's chief financial officer Puneet Sharma had told analysts recently. "After the CCI (Competition Commission of India) approval, we will have better clarity on data."

On an industry level, the total number of outstanding credit cards in the system grew 25.3% year-on-year to 78.7 million in June, the highest in the past 30 months.

Around 1.85 million new credit cards were added to the system in June, led by HDFC Bank NSE -0.05 %, which added nearly 386,000 credit cards.

 Source Name:-Economic Times

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 16-09-2022
Notification No. 29/2022-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to decrease the Special Additional Excise Duty on production of Petroleum Crude and export of Aviation Turbine Fuel.

Date: 16-09-2022
Notification No. 30/2022-Central Excise
Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022 , to decrease the Special Additional Excise Duty on Diesel.

Date: 15-09-2022
NOTIFICATION No. 79/2022-Customs (N.T.)
Electronic Duty Credit Ledger (Amendment) Regulations, 2022

Date: 15-09-2022
Notification No. 77/2022-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 15-09-2022
Notification No. 78/2022 - Customs (N.T.)
Exchange rate Notification No. 78/2022-Cus (NT) dated 15.09.2022-reg.

Date: 14-09-2022
NOTIFICATION No. 76/2022-Customs (N.T.)
Seeks to amend RoSCTL notificatio

Date: 14-09-2022
NOTIFICATION NO. 75/2022-Customs (N.T.)
Seeks to amend RoDTEP notification.

Date: 08-09-2022
Notification No. 49/2022-Customs
Seeks to amend Second Schedule to the Customs Tariff Act to prescribe export duty on specified Rice products.

Date: 07-09-2022
Notification No. 47/2022-Customs
Seeks to amend notification No. 56/2000-Customs, dated the 5th May, 2000 to apply IGCR Rules with effect from 01.10.2022

Date: 07-09-2022
Notification No. 48/2022-Customs
Seeks to amend notification No. 57/2000-Customs, dated the 8th May, 2000 to apply IGCR Rules with effect from 01.10.2022

Exim Guru Copyright © 1999-2022 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001