Axis Bank Managing Director and Chief Executive Officer Amitabh Chaudhry on March 30 called the bank’s move to acquire Citibank's India consumer business as a “deal of a lifetime”. The buyout will give Axis Bank access to 2.5 million Citibank customer cards and will result in an increase of around 31% to its existing card base.
The transaction will aid the lender in increasing its card spends market share by 480 basis points, the MD said. “Citibank has a complimentary and quality portfolio of close to 2.5 million cards with amongst the highest monthly spends per card across industry and a book size of approximately Rs 8,900 crore as of June 2021,” he added.
Further, post conclusion of the transaction, the combined assets under management of Axis Bank’s wealth management business will increase by 42%, making it the third-largest wealth manager in the country, as per Chaudhry.
The combined current account and savings account ratio, on a proforma basis, post completion of the transaction would improve by 200 basis points to 47% and it will also be liquidity coverage ratio accretive, the management said.