Banking giant Citigroup India has decided to put its commercial vehicle finance business unit on sale in line with its global asset sale strategy to raise capital by selling less-efficient divisions.
As part of its cost cutting exercise, the sub-prime loss-hit Citigroup is going ahead to sell its truck and commercial vehicle financing business and though it is a low margin business, many players have lined up to buy it.
According to sources, HDFC Bank, Kotak, Sundaram, Axis Bank, Tata Capital, Future Capital, GE and Shreeram Transport Finance, are some of the potential buyers eyeing Citi's commercial vehicle financing business.
For these players it will not just be a good opportunity to scale up but for firms like Tata Capital and Future Capital it will be a good chance to enter into this segment.
When contacted Citi's top management said: "We don't want to comment on the market rumors. India continues to be one of Citi's top priority markets."
While for starters it is the commercial vehicle division on the block, many would ask what else could be on sale.
Source:
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