Page 52 - Banking Finance May 2022

FEATURE

AXIS BANK ACQUIRES

CITIBANK’S INDIA

CONSUMER BUSINESS

FOR RS. 12,325 CR

I n a significant acquisition in the Indian banking sector, franchise of Citibank having a bouquet of fee-oriented and

Axis Bank has acquired Citibank’s consumer businesses
profitable segments, which include quality credit card
portfolio, affluent wealth management clientele, meaningful
for Rs 12,325 crore.
deposits with 81 per cent being CASA, along with a strong
The transaction comprises the sale of the consumer
consumer lending portfolio. After the acquisition, Axis Bank
businesses of Citibank India, which includes credit cards,
will have 28.5 million savings accounts, 2.3 lakh Burgundy
deposits and loans businesses in retail banking, wealth
management and consumer loans. The deal also includes the customers and 10.6 million cards. “The bank has made large
investments in people, processes and technology over the
sale of Citicorp Finance (India) Ltd, comprising the asset-
past few years. With the required capabilities in place, it
backed financing business, which includes commercial
expects successful integration across all key parameters
vehicle and construction equipment loans as well as the
personal loans portfolio. including employees, customers, product offerings and
technology in a value accretive manner,” the bank said.
Axis Bank will acquire 3 million customers of Citibank India
According to Axis Bank, the acquired portfolio would
to enhance the former’s presence in the key identified
growth segments. Its cards balance sheet will grow by 57 increase Axis Bank’s credit card customer base by 31 per
cent with an additional 2.5 million cards, which will, in turn,
per cent, with an additional 2.5 million Citibank cards,
bolster the cards balance sheet position to be among the
making it one of the top 3 cards businesses in the country.
top 3 players in the Indian market. Moreover, the wealth
The deal will add Rs 1,10,900-crore assets under and private banking portfolio will add great value to the Axis
management from Citi Wealth & Private Banking products Burgundy business, further accelerating its growth ambitions
to augment and reinforce Axis’ Burgundy brand, making it in that segment.
the third largest by combined AUM in the wealth
management space. The deal will involve addition of “Axis Bank and Citibank together will ensure continuity of
superior customer service levels, even post-closing of
aggregate deposits of Rs 50,200 crore, of which 81 per cent transaction, across all customer channels. Citibank’s
is CASA (current and savings account). Further, the deal will
customers will continue to avail all the rewards, privileges,
include over 1,600 Suvidha corporate relationships with
and offers to which they were previously entitled,” it said.
more than 1 million customers and an average salary of Rs
70,000 per month. In April 2021, Citigroup announced its exit from the
consumer banking in the country (along with 12 other
Axis Bank said it will gain access to 7 offices, 21 branches
countries) as part of a global strategy to focus on institutional
and 499 ATMs of Citibank across 18 cities. It will also absorb business. The bank had then said that it will continue with
around 3,600 in-scope consumer employees of Citibank.
its wealth management and institutional business in India.
“Axis Bank looks at this acquisition as a healthy strategic fit,” The bank had indicated that there won’t be any layoffs or
it said. It will gain access to the large and affluent customer closure of offices in India. (Source: The Indian Express)

52 | 2022 | MAY | BANKING FINANCE