Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Live: LIVE: UP Chief Minister Yogi Adityanath Speaks To Rahul Joshi
you are here: HomeNewsBusiness

Citi joins list of foreign banks scaling down India operations with Rs 12,325 crore arm sale to Axis Bank

However, nearly all the major foreign lenders including those who do not have banking operations in the country, use India as a back office to support their global operations and employ thousands of techies in cities like Bengaluru and Pune.

March 31, 2022 / 11:21 AM IST
Axis Bank has a rich network of Citi alumni across the organisation, who run its different business segments.

Axis Bank has a rich network of Citi alumni across the organisation, who run its different business segments.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

American banking major Citi has joined a long list of foreign banks that have either exited or cut down on their business presence in India with the sale of its consumer banking business to Axis Bank for Rs 12,325 crore.

Except for Singaporean lender DBS Bank, which has expanded its presence in the country and also acquired a domestic private sector bank, many foreign lenders have cut their presence in the country due to a slew of reasons, including global strategies or also technological shifts like automation and online banking which make branch banking redundant.

The foreign lenders also have a litany of concerns with the regulatory landscape in India, starting with priority sector lending (PSL) under which they have to devote 40 per cent of their loans to segments mandated by the government or face a penalty, the insistence on operating as a wholly-owned subsidiary and not as a branch of a foreign subsidiary to ring-fence local operations and also others like data localisation.

However, nearly all the major foreign lenders including those who do not have banking operations in the country, use India as a back office to support their global operations and employ thousands of techies in cities like Bengaluru and Pune.