has the size and valuation constraints to acquire such an asset, while for HDFC Bank it is not a game-changer in terms of size but it is still a good asset, the brokerage said.
Citibank’s India retail business is up for sale as part of a global restructuring. On the block is the $3.5 billion retail asset book with a 4-6% market share of card or spending, sizeable home loan book and an affluent deposit base.
Reports suggest five banks including HDFC Bank, , Axis Bank, IndusInd Bank and DBS Bank have been shortlisted.
The brokerage said the size of Citi’s business is too large for IndusInd Bank and its valuation does not favour deal-making.
Valuations would be a constraint for Axis Bank as well although it would be a favourable acquisition.
Citi’s affluent retail business fits well with DBS Bank India’s premium offerings and banking relationships, said CLSA.
For HDFC Bank, the retail book size of Citibank is not a game-changer but for Kotak Mahindra Bank, the business adds 20% to its current retail book and increases its card segment by three times, said CLSA. It is also complementary to its affluent customer base and Kotak’s premium valuation will aid it in a purchase, said CLSA.
