DBS in Advanced Talks for Citi’s India Consumer Unit

Citi is keen to exit its India consumer banking operations soon and would like to sell the entire set-up in one go, sources told India media.

Talks with DBS Bank are at an advanced stage and they are keen to take up the entire consumer banking operation,» a person familiar with the matter said.

DBS was one of the first foreign lenders to operate a wholly-owned subsidiary in India, and has been keen to expand operations in the country. Last year, it took control of loss-making Lakshi Vilas Bank and merged it with its India entity.

DBS chief executive Piyush Gupta said,the bank is always looking at assets that could be beneficial to the franchise, but we do want to get caught in a bidding frenzy, when asked about the bank’s interest in Citi’s retail assets in Asia at a media briefing last week on DBS’ first-quarter results.

Standard Chartered and local lenders Kotak Mahindra Bank and Axis Bank are also said to be interested, while SBI Cards and Payment Services is eyeing Citi’s credit card portfolio there. Private lender Yes Bank also joined the list of interested parties.

In February, Citi announced its intention to exit its consumer banking business in 13 markets, 10 of which are in Asia, in a move to double down on wealth.

Citibank India has 35 branches and employs 19,000 people,  serving 2.9 million retail customers, including 1.2 million bank accounts and 2.2 million credit card accounts, according to «Mint.» It has a 6 percent market share of retail credit card spends in India.