Axis Bank Announces Acquisition of Citibank’s Retail Business

Synopsis – However, the deal excludes Citi’s institutional client businesses. The announcement comes after over a year when Citi had announced its exit from over 13 countries in Asia including India as well. After the completion of the deal, over 3,600 employees of Citi will be transferred to Axis Bank.

Citibank and India’s third-largest bank, Axis Bank have come together to close a deal under which Axis is acquiring Citi’s consumer business in India. Boards of Directors of both the firms have approved the acquisition deal that includes credit cards, retail banking, wealth management, and consumer loans, for over $1.6 billion (₹12,325 crores).

However, the deal excludes Citi’s institutional client businesses. The announcement comes after over a year when Citi had announced its exit from over 13 countries in Asia including India as well. After the completion of the deal, over 3,600 employees of Citi will be transferred to Axis Bank.

As per mentioned by Citi, the deal which requires the approval of regulatory approvals, is expected to be completed by the year 2023. Also, it furthermore said that the announcement is only the initial stage of the process. “We will ensure you are duly informed of all relevant changes to your services and products, with adequate advance notice,” said Citi in a statement.

Talking about the deal, Amitabh Chaudhry, MD & CEO, Axis Bank, said, 

We are delighted with the addition of an enviable retail franchise and a high-quality talent pool as we continue our journey towards becoming a premier financial services brand, in line with our GPS strategy framework.

Chaudhry added,

This is a significant milestone in Axis’ journey of growth and leadership and will bring in great value for all stakeholders. The amplified scale and width of offerings, the diversified portfolio of products, and global best practices will enhance customer experience, while greater synergies both on revenue and cost side will augment value for the new franchise. We look forward to collaborating with Citi’s experienced senior leadership team and diverse talent pool, as they join Axis’ 86,000+ strong, dedicated workforce.

Citi is reportedly taking this step in order to increase further investments and expand its Institutional Clients Group franchise in India. Apart from this, Citi has also informed that the current Citi customers in India will not face any immediate change. It said that its consumers’ banking operations and branches will continue to operate the same way.

Ashu Khullar, CEO, Citi India, said, 

We are extremely pleased with this outcome for our consumer colleagues and clients. Axis Bank is committed to building its consumer banking business in India and is backed by a strong market presence. We believe Axis Bank will provide our employees an excellent environment to build their careers and shall meet all the financial needs of our consumer clients.

Khullar said,

We continue to remain committed to contributing to India’s growth and development as we deepen our presence through our institutional businesses and our community initiatives. Citi will also continue to harness India’s rich talent pool in the areas of Technology, Operations, Analytics, Finance, and allied functional areas through its network of Citi Solution Centers that are located in five cities in India and support our global businesses.