Shriram City,LVB in talks to buy out Citi Financial NBFC

Market sources report that Citi Financial India, an NBFC is looking for new buyers after talks with Kotak Mahindra Bank failed. Citi Financial India has now entered into active discussion with Tamil Naidu based Shriram City Union Finance and Lakshmi Vilas Bank to acquire it. Shriram City Union Finance (Shriram City) is part of the three decade-old Chennai-based Shriram Group and is a deposit-accepting non-banking financial company (NBFC).

Market sources reveal that that Shriram has already appointed Bank of America-Merill Lynch as the investment banker for the deal. Citi Financial falls under an entity called Citi Holdings and is looking to sell off all its non-core investments under the Citi Holdings.Citi Financials India has a Rs 9,000-crore balance sheet,118 branches in India with over 2000 employees.Citi Financial has been struggling with NPA’s as the non-banking finance company has seen many retail loans given to low-income borrowers go bad.citi financial sriram

Lakshmi Vilas Bank (LVB) is also said to be in talks with Citigroup to acquire Citi Financial India jointly with Shriram City.LVB is said to have hired investment bank JM Financial to carry out due diligence of Citi Financial

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