The board meet update comes a day after reports said Kotak Mahindra Bank and Axis Bank had emerged as the top contenders to acquire the assets of Citibank’s Indian retail business
Kotak Mahindra bank to mull raising funds
Kotak Mahindra Bank’s board will meet on December 10 and 11 to consider raising funds through multiple debt instruments in one or more tranches for FY23, the private lender said in a regulatory filing on December 7.
“(The board will) consider the proposal for seeking the consent of the board for issuance of unsecured, redeemable, non-convertible debentures/bonds/other debt securities, on private placement basis, in Indian/foreign currencies, in domestic and/or overseas markets, in one or more tranches, during FY 2022-23, subject to the approval of the members of the bank and any other approvals as may be necessary,” the filing said.
However, it did not specify the quantum of the funds that it was looking to raise.
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The update comes a day after The Economic Times reported that Kotak Mahindra Bank and Axis Bank had emerged as the top contenders to acquire the assets of Citibank’s Indian retail business.
According to the report, Kotak Mahindra was the more aggressive bidder and more keen than Axis Bank to acquire the business. The deal will likely be all cash of less than $ 2 billion.
“The bidders are negotiating the cash payout, fee and commissions they will cough up for Citi’s team to service the consumer book,” the publication cited sources as saying.
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Citi’s consumer business in India comprises credit cards, retail banking, home loans and wealth management. The bank has 35 branches in the country and employs 4,000 people in the consumer banking business.
In April, Citibank said it would exit the retail business in 13 markets to conserve capital and focus on higher yielding revenue streams. However, its management has indicated that the exit would not lead to “fire sales”.