Having recently announced plans to exit consumer banking operations in 13 markets, Citi is known to be in talks with many foreign lenders, including DBS Bank, for its India business. Sources familiar to the development say that Citi is eager to exit its India consumer banking operations soon and is likely to sell the entire set-up in one go.

According to the sources familiar with the development, Talks with DBS Bank are at an advanced stage and they are eager to take up the entire consumer banking operation. Many banks are said to be interested in Citi’s credit card business in India, which had 26.4 lakh customers as of February 2020. DBS Bank India Limited is first among large foreign banks to start operating as a wholly-owned, locally incorporated subsidiary in India and has been keen on expanding its operations in the country. In November, Lakshmi Vilas Bank was amalgamated with DBS Bank India, granting it an access to a large customer base. Yet, according to the analysts, it may take around six months for any transaction to be finalized.

According to a report by JM Financial, Citi’s Indian consumer business has a sizeable presence, with retail loans totaling about ₹3,200 crore. It needs to be seen whether all these businesses will be sold together or piecemeal. Also, the payment consideration, in cash vs. stock, will be a critical determinant to decide the eventual buyer. Since Citi functions in India through a branch route versus a wholly-owned subsidiary, the transaction will mostly be an asset sale.