Muristek
New Delhi, March 30
US bank Citigroup on Wednesday announced sale of its Indian consumer banking businesses, including credit cards, retail banking, wealth management and consumer loans, to private lender Axis Bank for Rs 12,325 crore, as part of its plans to exit retail operations in 13 markets.
The deal, which is expected to close in the first half of the 2023 calendar year, will include the transfer of about 3,600 Citi employees to Axis.
The sale excludes Citi's institutional client businesses in India, it said.
Axis Bank is the fourth-largest issuer of credit cards with a total base of 86 lakh cards and the deal will add about 25 lakh credit cardholders, making it one of the top three cards businesses in the country, the private lender said in a separate statement.
Axis, which has a retail book of nearly Rs 4 lakh crore, will acquire about 30 lakh unique customers of Citibank India, seven offices, 21 branches and 499 ATMs across 18 cities.
Citi's retail book is nearly Rs 68,000 crore, of which retail loans account for Rs 28,000 crore. With 12 lakh bank accounts, the total India business contributes 1.5% in profit to the lender's global book.
"Axis Bank's large loan book would be complemented by Citibank's affluent customer segment, creating product and branch footprint synergies," the private lender said. "Post the acquisition, Axis Bank will have 2.85 crore savings accounts, 2.3 lakh+ Burgundy customers and 1.06 crore cards." Citibank's customers, it said, will continue to avail all the rewards, privileges, and offers to which they were previously entitled.
Citibank, under its first woman CEO Jane Fraser, decided to exit retail businesses in 13 markets to conserve capital and focus on higher-yielding revenue streams. Citi entered India in 1902 and started the consumer banking business in 1985. — PTI
Deal expected to close in 1st half of 2023
The deal, which is expected to close in the first half of the 2023 calendar year, will include the transfer of about 3,600 Citi employees to Axis Bank Axis Bank, which has a retail book of nearly Rs4 lakh crore, will acquire about 30 lakh unique customers of Citibank India, seven offices, 21 branches and 499 ATMs across 18 cities With 12 lakh bank accounts, Citi's India business contributes 1.5% in profit to the lender's global book