Citigroup Inc. has partnered with Axis Bank Ltd. to finance non-resident Indians (NRIs) investing in foreign-currency deposits, according to people familiar with the matter. The arrangement involves Axis Bank providing standby letters of credit to support financing extended by Citigroup through its offshore operations. This setup allows NRIs to leverage their investments in dollar deposits. Citigroup exited India's retail banking business in 2022 through a sale to Axis Bank. The collaboration aims to capitalize on the growing demand for dollar deposits among NRIs, leveraging the strengths of both financial institutions.

The partnership is expected to enhance the range of financial products available to NRIs, providing them with more options for managing their foreign-currency holdings. By combining Citigroup's global reach and expertise in offshore financing with Axis Bank's strong presence in India, the two companies aim to create a competitive offering in the dollar deposit market. This move also reflects the ongoing trend of international banks collaborating with local institutions to better serve the needs of their clients in emerging markets.