Axis Bank Ltd. share price target

Credit Growth Momentum Continues

customers and increasing granularity (ii) Citi's portfolio would complement that of Axis as both entities have a different customer profile and (iii) it provides good cross sell opportunities to Axis which would eventually lead to synergies. In our view, the deal is positive for Axis Bank in the medium term, however the key is customer retention. With systemic asset quality risk receding and credit growth prospects improving, Axis could be one of the main beneficiaries. We raise the multiple/TP to 2.3x/Rs975 as we roll forward...

Axis Bank shells out a purchase consideration of Rs123bn for Citibank’s India consumer business to acquire: 1) loan portfolio of Rs274bn (accretion of 4% to its advance base) across credit cards, mortgage, personal & ready credit loans, assetbacked finance and small business banking; 2) 2.5mn credit card customer base
(addition of 31% to its base)

AXSB to acquire Citibank's Consumer business for INR123b AXSB announced the acquisition of Citibank's Consumer business in India, including its Credit Cards, deposits, Wealth Management, loans, customer guarantees business, Insurance distribution, and Small Banking business. It also proposed to acquire the Commercial Vehicle and Construction Equipment asset backed financing facilities, Assigned Asset backed financing portfolio, Personal loan portfolio, and servicing of Assigned Mortgages loan portfolio of Citicorp Finance (India). The total consideration of ~INR123b, along with the estimated...

Axis is the third-largest private sector bank in India in terms of asset size, with a balance sheet of >INR9tn.