The acquisition, if all goes well, adds a feather to its cap. We see Axis Bank gradually narrowing its valuation discount to its private peers as it executes its growth strategy with prudence.
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Madhuchanda Dey Axis makes a bold inorganic move by acquiring Citi’s consumer business 3 mn strong high-spending customers a key draw Immense cross-sale opportunities to the affluent and super affluent class Strengthens position in credit card and wealth business Solid addition to low-cost deposits and lucrative salary accounts Immense cost-reduction opportunities to make the acquisition attractive Erosion of clients a key risk as well as the number of employees from Citi finally coming to Axis Axis is at a discount to private peers that could narrow as…
