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Axis-Citi Deal: Short-Term Pain But Long-Term Positive, Say Analysts
Axis Bank Ltd's acquisition of the India consumer businesses of Citibank and Citicorp Finance India Ltd. is likely to hurt earnings in the January-March quarter. However, if executed well, the long-term gains outweigh this pain, said analysts. Reiterate buy with a target price of Rs 1,130 per share for Axis Bank. Expect full breakeven around the second or third quarter of FY25. Harmonisation of the credit cost policy, given Axis Bank's conservative standards versus Citi, might lead to a one-off charge in the January-March quarter. The interest outgo on Citi’s retained savings customers would go up, as Axis Bank’s savings account rate is higher at 3-3.5% versus Citi’s 2.5%. Source - NDTV
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