On March 1, 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.
Here is an explainer on what the deal means for customers and employees:
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.
Why did Citi sell its consumer business?
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.
“Employees joining Axis Bank will be receiving their current or a better remuneration package,” Axis Bank MD and CEO Amitabh Chaudhry said during the announcement of the deal.
What does the deal mean for customers of Citibank?
The sentiment among Citibank customers has been mixed, in general. Some customers have praised Citibank for its services and welcomed the deal, while others have expressed concern about what the future will hold in terms of existing services.
“Citibank India, I’ve been your customer for nearly 25 years now. You’ve been brilliant and close to perfect all these years,” said Nagesh Kamath, a Citibank customer.
Dhinesh Potnaru, a Citibank customer, tweeted: “The best banking experience I had in the last 12 years. Never had to visit the bank's physical branch. No mis-selling of products. A gold standard in Customer Experience.”
But some customers Moneycontrol spoke to expressed apprehension about whether their existing accounts and services with Citibank would continue.
Also read: Some Citibank customers are confused amid transfer of services
What will happen to the Citi branches?
On February 23, Citibank removed the signboard from its Kanak building office in Kolkata's Chowringhee Road, where it began its India operations in 1902. Axis Bank will take over Citibank’s seven offices, 21 branches and 499 ATMs across 18 cities.
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