Categories: Banking

Axis Bank completes deal to buy Citibank’s India consumer business

Axis Bank to buy Citibank’s India consumer business

Axis Bank completed the acquisition of Citibank’s consumer business. The deal, which was announced in March 2022, will see India’s third-largest private sector bank absorbing Citibank’s consumer businesses, covering loans, credit cards, wealth management and retail banking operations in India. The deal happened after Citigroup in 2021 announced its decision to shutter its retail banking operations in 13 countries, including India, as part of a global business strategy. Axis Bank put out a video advertisement to welcome Citibank’s 30 lakh plus customers on March 1.

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What was the deal?

In March 2022, it was announced by the two banks that Axis Bank would acquire the consumer banking business of Citibank. The deal would include the sale of covering loans, credit cards, wealth management and retail banking operations in India. In addition, the deal will also include the sale of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.

How much will Axis Bank pay Citibank?

Axis Bank announced that it would pay a consideration of up to Rs 12,325 crore to Citibank for the acquisition. It was part of a global strategy. In 2021, Citigroup, the parent company of Citibank, had announced a decision to close its retail banking operations in 13 countries, including India, to re-align its global business strategy. The other markets are Australia, Bahrain, China, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam.

What does the deal mean for Citibank employees?

Axis Bank had said that it would onboard more than 3,500 employees of Citibank after the acquisition of its consumer businesses in India.

Important takeaways for all competitive exams:

  • Axis Bank  Founded: 1993, Ahmedabad;
  • Axis Bank  CEO: Amitabh Chaudhry (1 Jan 2019–);
  • Axis Bank  Headquarters: Mumbai.

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Sumit Arora

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