Axis Bank Completes Acquisition Of Citibank’s Retail Business. Know What It Means for Customers

Citi customers will continue to avail same benefits and privileges as there will be no changes in their existing bank account numbers, credit and debit card numbers, cheque books, IFSC and MICR codes.

Citibank customers will continue to be serviced by the same relationship managers ( Image Source :Getty )

Axis Bank has completed the acquisition of Citibank’s consumer business in an accelerated time frame of within seven months after receipt of approval from the Competition Commission of India (CCI).

The deal has been closed with Axis Bank for a final cash consideration of Rs 11,603 crore.  Axis Bank will take 30-lakh plus customers of Citibank into its fold.

The amount paid is Rs 700 crore less than the amount of Rs 12,325 crore mentioned while announcing the acquisition in March last year, reported news agency PTI.  The amount was low on the account of a decline in the deposit base and the reduction in the number of customers consenting to move to Axis Bank post-sale.

Axis Bank's market share in the cards business shot up

The lender’s position in the cards business improved from 11.4 per cent to 16.2 percent. The lender bagged a quality credit card franchise with one of the highest wallet shares in premium cards.

With this acquisition, Axis Bank expects healthy growth in its existing card base. Axis Bank expects 19 per cent growth in outstanding cards. Combining both entities, the outstanding cards are 1.12 crore, as per RBI data for April 2022 to January 2023.

“With the highest number of transactions per card across the industry and digitally engaged customers, the deal would strengthen Axis Bank’s position in the top eight metros,” said Amitabh Chaudhry, MD & CEO, Axis Bank on Wednesday. He added it also provides the opportunity to adopt global best practices in client servicing and operations through Citi Phone banking.

Axis Bank gets access to highly affluent wealth customers

Axis Bank will also get access to highly affluent wealth customers, resulting in a 33 perc ent addition to the overall AUM of Burgundy Private Banking portfolio, further strengthening the existing franchise. The deal will also help Axis Bank expand the wealth management business, with the combined AUM expected to increase by Rs94,700 crore.

The current AUM of the bank’s wealth management portfolio stands at Rs 3,78,500 crore that makes it the third-largest by combined AUM in the industry.

What does it mean for Citibank customers?

Citi customers will continue to avail same benefits and privileges as there will be no changes in their existing bank account numbers, credit and debit card numbers, cheque books, IFSC and MICR codes. Citi customers will have access to all the rewards, privileges and offers on the cards.

In fact, the Citi branding and logo will remain the same on the existing cards. It will phase out during the transition period in the next 12 to 18 months.

“The credit card portfolio of Axis Bank varies from Citi, so there is no overlapping of features and benefits. Considering this, we don’t have any plans to merge or discontinue any existing credit cards,” said Arjun Chowdhry, Group Executive & Head of Cards, Payments & Wealth, Axis Bank.

Moreover, Citi customers will continue to be serviced by the same relationship managers and teams for the purpose of investments and insurance. The bank also noted that all the 21 branches of Citi "remain fully equipped to serve the incoming customers. All the services to the incoming customers will continue to function as before". 

The retail customers of Citi will now have a wider geographical reach with access to 4,900 branches and 16,000 ATMs of Axis Bank.