Axis Bank completes acquisition of Citibank’s consumer business

Mumbai: : Axis Bank, one of India’s largest private sector banks, has completed the acquisition of Citibank’s consumer business in a speedy timeline of 7 months after receiving CCI approval, a strong testament to its execution

This is now complete with Axis Bank paying a total purchase consideration (after customary and contractual adjustments) of Rs 11,603 crore to Citibank India.

The transaction includes the sale of Citibank India’s consumer business, which includes loans, credit cards, wealth management and retail banking operations. The deal also includes the sale of the consumer business of Citicorp Finance (India) Ltd., a non-banking financial company to Citi, which includes asset-backed financing business, including commercial vehicle and construction equipment loans, as well as personal loan portfolio.

The acquisition is a healthy strategic fit in line with Axis Bank’s GPS (Growth, Profitability and Sustainability) strategy and its focus on premium segment growth. The bank has gained access to a large, rich and profitable customer franchise of Citibank, which aligns well with its premiumisation strategy.

With the acquisition, Premium Cards brings a quality credit card franchise with one of the highest wallet shares, complementing and consolidating Axis’ position in the cards business, improving market share from 11.4% to 16.2%(1) Does The acquired portfolio will result in a 19% increase in Axis Bank’s credit card customer base with an additional 1.8 million cards. With the highest number of transactions per card in the industry and digitally connected customers, the deal will strengthen Axis Bank’s position in the top 8 metros, while providing an opportunity to adopt global best practices in customer service and operations through Citi Phone Banking.

Additionally, the acquisition of Citibank India’s 2.4 million customers enhances Axis Bank’s presence in key growth regions, complementing existing Axis franchisees. The bank now has total deposits of Rs 8,881 billion, with a high CASA ratio of 77%, with savings account (SA) at 71%. Access to a premium deposit base with deep corporate pay relationships improved the combined CASA ratio by 150 bps to 46% on a pro forma basis. Thriving and digitally connected SA customer base with access to 1600 convenience corporate relationships which significantly strengthens the Salaries business of Axis Bank.

Post the acquisition, Axis Bank gains access to highly affluent customers, which will result in a 33% increase in the overall AUM of the Burgundy private banking portfolio, further strengthening the existing franchisee. With an additional AUM of INR 947 billion in Citi products in wealth management and private banking, the current AUM of the Bank’s wealth management portfolio is INR 3785 billion, making it the third largest in the industry.

Through the acquisition, Axis Bank welcomes a diverse talent pool of 3200 employees trained in global best practices and an experienced leadership with deep domain expertise.

Citi customers will continue to enjoy the same benefits and privileges without any change in their existing bank account number, credit/debit card number, cheque book, IFSC and MICR code. They will continue to be served by the same relationship managers and teams. All the 21 in-perimeter branches are fully equipped to serve the visiting customers. We are also equipping 13 additional branches that will be available for incoming customer service during the transition period. Necessary IT applications and trained manpower have been deployed in the acquired branches. All services for incoming customers will continue to function as before as the same teams from Citi have moved to Axis.

On the other hand, the former City Retail franchise will now have access to a massive (4900) branches and (16,000) ATMs and recyclers as well as state-of-the-art digital plus data-science assets through the Axis platform.

In addition, Citibank customers will exclusively benefit from Axis Bank’s wide geographic reach and comprehensive service offerings, as well as the expansion of One Axis capabilities that will ensure the ‘same or better’ offer for all Citibank customers.

Speaking on the occasion, Amitabh Choudhary, MD & CEO, Axis Bank said, “We heartily welcome over 2.4 million customers and 3,200 employees to our Axis family as we successfully complete the first phase of integration. This is a significant milestone in Axis’ journey of growth and leadership in the banking industry and is poised to bring great value to all stakeholders involved. We have a strong balance sheet to support our ambitions Sheet, have comfortable capital levels and have the right team and customer segments.

He further added, “Citibank has a culture that is very similar to ours, with a commitment to excellent customer service, focus on people and community engagement. Axis Bank already has a strong following of Citi alumni in its hierarchy. rich network, which reflects the cultural alignment between the two organizations. Given the expertise that the new employees will bring to the table, we will position them to meet our GPS objectives.

See them as an important force to help. The premium portfolio and business synergies through this transaction will help accelerate and further accelerate our already strong plans in priority areas.

Subrata Mohanty, Group Executive and Head, Banking Operations and Transformation, Axis Bank, said, “We are delighted to add Citi’s premium consumer business and a high-quality team of associates to Axis Bank. We expect our customers to experience the value of this integration with new, innovative products and world-class customer practices. Axis Bank is strongly positioned to fuel India’s growth story.”

The bank’s Group Executive & Head – Cards, Payments & Wealth Arjun Choudhary said, “Axis Bank is committed to becoming a strong consumer banking business in India, and already has a deep market presence across sectors and geographies. All 3200 associates of Citi, who have a strong and diverse skill-set, are extremely excited to join the Axis family and take forward their growth ambitions. We look forward to collaborating with Axis’ experienced senior leadership team and diverse talent pool, as we join the 88,000+ strong, dedicated workforce and live up to the brand’s ‘Dil Se Open’.


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