The Axis-Citi acquisition has become the talk of the town for a while now. As Axis adds the CitiBank feather to its cap, questions about the resultant alterations arose in the banking industry. Axis Bank, the 3rd largest private sector lender, signed the acquisition agreement with Citi in March 2022. The same is expected to be capped by September 2024. As you read you will find significant takeaways from one of India’s largest financial deals.
What does the billion-dollar transaction bring to the table
The Axis-Citi acquisition deal included the following components of Citi Bank’s business model.
- Credit Cards
- Retail Banking
- Wealth Management
- Consumer Loans
The transaction also included the sale of Citicorp Finance Ltd, an NBFC operating under the parent company of Citigroup. The asset-backed company offered loans for commercial vehicles and construction equipment along with personal finance lendings. Citibank had a total of 2.9 million retail customers and 1.2 million bank accounts. They also provided services to more than 3000 corporate clients. After the acquisition, Axis Bank will have access to the following assets and customers:
- 25 lakh credit card users
- 1.2 million retail customers
- 82,000 crore worth of wealth management products
- 50,200 crore worth of deposits
- 7 offices
- 21 branches
- 499 ATMs
What is excluded from the Axis-Citi acquisition deal
The Axis-Citi acquisition deal did not include the transfer of Citi’s institutional clients to Axis Bank. Citi stated that it will continue to serve clients in India as well as across the globe. While Citi handed over its consumer business to the Axis deal, it still heavily remains committed to its institutional business in the country. Citi’s institutional clients’ group has a physical presence in 95 countries, serving governments and 90% of Fortune 500 companies in their operations.
How will the acquisition impact Citi customers
No impact will be seen in the banking services for Citi customers till the completion of the deal, which is expected to happen by 2024. However, after the merger, they will get access to Axis bank’s technology and offerings. The customers might have to go through the KYC process as per Axis bank’s norms. The Citi customers will get to carry over all the reward points and other incentives which they have been accessing previously. While the details of card transitions are still to be announced by Axis bank, the officials have assured that benefits and features will undergo no changes and the banking experience will only be amplified.