Axis Bank completes acquisition of Citibank, says ready to compete with bigger players
- ByStartupStory | March 1, 2023
Axis Bank has completed its acquisition of Citibank’s India consumer and non-banking finance businesses.
In one of the largest deals in the Indian financial services space, the deal has been closed for a cash consideration of $1.41 billion (Rs 11,630 crore). The deal was announced in March 2022. The deal will help Axis Bank to compete with bigger competitors like ICICI Bank and HDFC Bank.
From now on i.e. from March 1, Citibank’s home and personal loan, credit card and insurance businesses have come under the control of Axis Bank.
The acquisition has taken almost a year, after being announced in March, 2022. Just days ago, Citibank took down its signboard from its landmark Kanak Building office in Kolkata’s Chowringhee road – the place where the bank started its operations in India in 1902. In 2021, Citigroup announced its plans of existing 13 international consumer banking markets, shifting its focus to wealth management and away from retail banking in places where it is small.
This deal is considerably valuable for Axis Bank as it will get acquisition of three million unique customers of Citibank in India which will add to the company’s growth. The Axis Bank’s website disclosed that the deal will grow the Bank’s balance sheet by 57% with an addition to 2.5 million Citibank cards, making it one of the top three card businesses in the country.
The acquisition will also transfer more than one million customers and an average salary of ₹ 70,000 per month to Axis Bank, which will strengthen its salary business.
The customers of Citibank’s will be benefited from the Axis Bank augmented scale , its geographical reach and wide range of products and offerings. Axis bank will gain access to seven offices, 21 branches and 499 ATMs across 18 cities in India.
When it comes to card transactions, Citibank is among the leading financial institutions in the country. According to an RBI report, transactions worth ₹ 3,000 crore are carried out by the 2.5 million Citibank credit card users.
Though the customers will face little inconvenience as reports claim they will have to undergo a Know Your Customer (KYC) routine again. But both the banks have assured the process will be carried out in a phased manner to minimise the inconvenience to customers.
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