New Delhi, March 30
US bank Citigroup on Wednesday announced the sale of its Indian consumer banking business, including credit cards, retail banking, wealth management and consumer lending, to private lender Axis Bank for Rs 12,325 crore , as part of its plans to exit retail operations in 13 markets.
The agreement, which is expected to close in the first half of calendar year 2023, will include the transfer of approximately 3,600 employees from Citi to Axis.
The sale excludes Citi’s institutional client business in India, he said.
Axis Bank is the fourth largest credit card issuer with a total base of 86 lakh cards and the deal will add around 25 lakh credit card holders making it one of the top three card companies in the country, the private lender said in a separate statement. declaration.
Axis, which has a retail portfolio of almost Rs 4 lakh crore, will acquire around 30 lakh unique customers from Citibank India, seven offices, 21 branches and 499 ATMs in 18 cities.
Citi’s retail book is nearly Rs 68,000 crore, of which retail loans are Rs 28,000 crore. With 12,000 bank accounts, the total business in India contributes 1.5% of profits to the lender’s overall portfolio.
“Axis Bank’s large loan portfolio would be complemented by Citibank’s affluent customer segment, creating product and branch footprint synergies,” the private lender said. “After the acquisition, Axis Bank will have 2.85 crore savings accounts, 2.3 lakh+ Burgundy customers and 1.06 crore cards.” Citibank customers, he said, will continue to enjoy all the rewards, privileges and offers to which they were previously entitled.
Citibank, under its first female CEO, Jane Fraser, has decided to exit retail operations in 13 markets to conserve capital and focus on higher yielding revenue streams. Citi entered India in 1902 and started its consumer banking business in 1985. — PTI
The transaction should be finalized in the first half of 2023
- The deal, which is expected to close in the first half of calendar year 2023, will include the transfer of approximately 3,600 Citi employees to Axis Bank.
- Axis Bank, which has a retail portfolio of almost Rs4 lakh crore, will acquire around 30 lakh unique customers from Citibank India, seven offices, 21 branches and 499 ATMs in 18 cities
- With 12,000 bank accounts, Citi’s Indian business contributes 1.5% of profits to the lender’s global portfolio
Comments are closed.