How do you see Axis Bank getting the full benefit of the acquisition of the Citi unit?

During the previous week, Axis Bank completed the purchase of the Indian consumer banking business of Citigroup for a consideration of Rs.12,325 crore. This macro decision was part of Citigroup’s plan to exit consumer banking business across 13 markets and India was also part of the exit plan. In short, Citi sold the credit cards business, retail banking, wealth management and consumer loans in toto to Axis Bank.

There will be some big gains for Axis Bank from this deal. Axis Bank will be able to add 2.5 million Citi credit holders to its already large base of 8.6 million cards. This positions Axis Bank firmly with the top 4 in the business, apart from SBI, HDFC Bank and ICICI Bank. Citi will also help Axis Bank to add 3 million unique customers in addition to its network of 21 branches and 499 ATMs currently spread across over 18 major cities in India.

Citi Wealth already has wealth AUM of Rs.110,000 crore, which will help boost the client base and quality of Axis Burgundy. In addition, Axis also gets access to a massive Rs.68,000 crore of retail book of Citi, which includes retail loans of Rs.28,000 crore, something that is a natural extension to Axis. What is more important for Axis Bank is that the deal will add about 1.2 million banking customers of Citi, largely located in the affluent bracket.