After having forayed into a JV with Maruti Suzuki for car finance, earlier this year, Citibank is learnt to form an all new 50:50 JV with Mukesh Ambani-led Reliance Retail.
According to sources, the JV will aim to distribute Citibank`s consumer finance products such as loans and credit cards with several flexible and customised financing options at affordable rates,. Further, the JV is proposed to work as a non-banking finance company. The proposed JV is also expected to launch a couple of new co-branded cards.
The JV will have an authorised paid up share capital of Rs 5 billion, to be shared equally between the two, adds a source close to the development.
In the beginning, the JV would target Reliance Retail’s large customer base. Currently, Reliance Retail enjoys pan-India presence having over 1,000 retail outlets with a consumer base of around 4 million.