Axis Bank up 2% to acquire Citigroup’s Indian banking business

Axis Bank shares rose nearly 2 per cent to a high of Rs 763.90 in day trade Thursday on the back of the acquisition of Citigroup’s Indian consumer banking business, in an all-cash deal of Rs 12,325 crore. However, the stock pared its gains and rose 0.4 percent at Rs 532 as of 09:22 am, while the BSE Sensex was up 0.1 percent at 58,764.

The stock has gained 20 per cent in the last 17 trading sessions from the intraday low of Rs 637 touched on March 8, 2022. During the same period, the BSE index gained 12.5 per cent.

Under the Citi deal, Axis acquired the former Indian businesses, including credit card, retail banking, wealth management and consumer loans, and transferred about 3,600 Citi employees to Axis. The transaction is expected to close in the first half of 2023. The sale excludes Citi’s institutional client companies in India.

The bank said in a separate statement that Axis Bank is the fourth largest credit card issuer with a total base of 8.6 million cards and the deal will add about 2.5 million credit card holders, making it one of the three largest card companies in the country. .

“Additional value of Rs.1.11 trillion in Citi Wealth assets under management and private banking products to further enhance and enhance Axis’ Burgundy brand, making it AUM’s third largest wealth management brand through pooled AUM,” the statement added.

While the Citi deal could boost Axis Bank’s prospects due to a cheaper-than-expected valuation of above-average customer privilege; To extract synergies, seamless integration has been some of the main challenges for Axis Bank. Read the full analysis

Technical Show

axis bank
targeting: 807
the support: 749

Axis Bank stock appears to be facing some heavy resistance at the higher end of the Bollinger Band, which is at the Rs 767 level on the daily charts. If the stock is able to overcome this hurdle, it could extend its rally towards Rs 807. The immediate support for the stock is placed at Rs 749, the 50-day moving average (DMA), followed by Rs 725 – the 100-DMA.

However, the stock is likely to show sideways movement in the near term as indicated by the momentum indicators on the daily charts. The 14-day Relative Strength Index (RSI) is comfortable below the overbought territory, but the Directional Indicator (DI) and the slow stochastic are showing congestion in the stock ahead. However, the MACD has shown a positive crossover, which indicates the overall positive trend in the stock.

(with input from Nikita Fashcht)

Dear Reader,

Business Standard has always strived to provide the latest information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your continued encouragement and feedback on how we can improve our offerings has made our determination and our commitment to these ideals even stronger. Even during these challenging times brought about by Covid-19, we continue our commitment to keeping you updated with trusted news, authoritative opinions and insightful commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more, so we can continue to bring you more quality content. Our subscription form has seen an encouraging response from many of you, who have subscribed to our content online. Further subscribing to our online content can only help us achieve our goals of providing better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to.

Support quality press and Subscribe to Business Standard.

digital publisher

Leave a Reply

Your email address will not be published. Required fields are marked *