Axis Bank has announced the closure of its acquisition of Citibank’s consumer business for a total purchase consideration ) of ₹11,603 crore ($1.41 billion). This is lower than the ₹12,325 crore ($1.6 billion) when the deal was announced in March 2022. The transaction has been closed within seven months post receipt of the Competition Commission of India’s approval.
The transaction comprises sale of the consumer businesses of Citibank India, which includes loans, credit cards, wealth management and retail banking operations.
The deal also includes the sale of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Ltd., comprising asset-backed financing business, includes commercial vehicle and construction equipment loans as well as the personal loans portfolio.
The private sector bank said the acquisition would help it to focus on premium segment growth. The bank said it had gained access to the large, affluent and profitable customer franchise of Citibank.
Amitabh Chaudhry, MD & CEO, Axis Bank said, “This is a significant milestone in Axis’ journey of growth and leadership in the banking industry and is set to bring great value for all stakeholders involved. The premium portfolio and business synergies through this deal will help accelerate and add further momentum to our already robust plans across priority segments.”
“With the acquisition comes a quality credit card franchise with one of the highest wallet shares in premium cards, that is complementary and consolidates Axis’ position in the cards business, market share improving from 11.4% to 16.2%, the bank said.
The acquired portfolio would increase Axis Bank’s credit card customer base by 19%, with an addition of 1.8 million cards, it added. Through the acquisition, Axis Bank onboarded 3,200 employees trained in global best practices, and an experienced leadership with deep domain expertise.
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