Axis Bank Will Finally Complete the Acquisition of Citibank India’s Consumer and NBFC Business on 1 March 2023
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According to its regulatory filing, Axis Bank is set to acquire the consumer business of India for Citibank. The deal is from Citibank N.A. (CBNA) and NBFC from Citicorp Finance (India) Limited (CFIL). Axis Bank had already completed the agreement in March last year to buy Citibank’s consumer business for Rs. 12,325 in India. In USD, the value stands at $1.6 billion. The consumer base of Citibank includes credit cards, retail banking operations, loans, and wealth management.
The credit card portfolio of the bank has affluent customers with high average spending. Previously, Axis Bank had put a timeline of 12 months for it to get done with the acquisition. It received approval in July last year from the Competition Commission of India (CCI) as well. In its filing, Axis Bank revealed that with the progress they made to date, they can expect to go through with the acquisition by 1 March 2023.
t is well within the timeline of 12 months they have earlier indicated. But it depends on satisfactory adherence to contractual and customary conditions and CBNA BTA and CFIL BTA provisions. The deal will include wealth management assets of Rs. 1.1 crore, deposits of Rs. 50,000 crores, and a credit card portfolio of 25 lakh users. Becoming one of the top three in the Cards businesses in India, Axis Bank’s Cards grew by 57% and it also added 2.5 million additional from Citibank cards.
Axis Bank will operate 21 branches, seven offices, and 499 ATMs, which were earlier operated by Citi. The shares of Axis Bank on BSE closed at Rs. 845.15 up by 1.44%. In the third quarter, the fiscal growth for net profit increased by 62%. The profit climbed for the quarter ending 31 December from Rs. 3,614 crores in the past year to Rs. 5,853 crores.
