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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Clawback clauses may see the foreign bank get much less than the $1.6 billion agreed upon, given the steady erosion in its customer base and revenues.
On 30 March this year, when Citibank India announced the sale of its retail business to Axis Bank, the deal clocked in at $1.6 billion—almost 60% more than the street estimate of $1 billion.
The announcement brought the curtains down on a year-long process of trying to sell the global banking giant’s retail business in the country, a process that was micromanaged by the bank’s headquarters in New York.
By all accounts, having got themselves a good deal, Citibank executives should now be sitting pretty, waiting for completion of the transfer of assets. That would have been the case too, …
Lenders stand to gain a lot more than borrowers in the current challenging market environment
Aggressive expansion, continued dependence on its parent for business, and an adverse shift in the product mix weigh on profitability as well as investor sentiment.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
