Axis bank to complete acquisition of Citibank units by March 1

24 Feb 2023 , 09:45 AM

India’s top private sector bank, Axis Bank has informed stock exchanges BSE and NSE that the deal to acquire Citibank India’s consumer business and NBFC business of Citicorp is expected to be completed by March 1.

According to this, by March 1, all the customers, employees and assets of Citibank will be transferred to Axis, and the Indian lender will pay the consideration for the acquisition which is Rs 12,325 crore. Citibank’s consumer business including loans, credit cards, wealth management and retail banking operations will be acquired by Axis Bank. The bank’s credit card portfolio comprises affluent customers and have higher average spends than the industry.

“Based on the progress made till date, we estimate a reasonable possibility of completion of the acquisition by March 1, 2023, which is within the timeline of 12 months indicated earlier by us, subject to satisfactory completion of the customary and contractual conditions in accordance with the provisions of the CBNA BTA and CFIL BTA, as referred above,’ Axis Bank said in its filing.

The deal will see credit card portfolio of 25 lakh users, deposits of Rs 50,200 crore and wealth management assets worth Rs 1.1 for Axis Bank.

Axis Bank will gain access to 7 offices, 21 branches, and 499 ATMs currently owned and operated by Citibank.

The credit card balance sheet of Axis Bank to grow by 57% with an additional 2.5 million Citibank cards, making it one of the top 3 Cards businesses in the country.