InvestorQ : How does the Citi acquisition help Axis Bank compete with other large banks in India?
ishika Banerjee made post

How does the Citi acquisition help Axis Bank compete with other large banks in India?

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1 month ago
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During the week gone by, Citigroup completed the sale of its India consumer banking businesses (retail banking) to Axis Bank for Rs.12,325 crore. Citigroup’s had already decided to exit consumer banking business in 13 global markets including India. However, the institutional business will continue. What Axis Bank gets from Citi is the credit cards business, retail banking, wealth management and consumer loans business of Citi.

The deal will include the transfer of 3,600 employees of Citi also to Axis Bank. To begin with, the deal will add 25 lakh Citi credit holders to the existing Axis Bank family of 86 lakh card holders, bring them closer to the 3 big names in the cards business in India viz. HDFC Bank, SBI and ICICI Bank. In all, the deal will add to the Axis Bank fold; 3 million unique customers as well as 21 branches and 499 ATMs across more than 18 major cities in India.

Citi Wealth is another major property for Axis Bank and helps to enhance its franchise with the existing Axis Burgundy family. Citi Wealth brings AUM of Rs.110,000 crore and make Axis Bank the third largest in this creamy banking space. That is not all. Axis gets Rs.68,000 crore of retail book of Citi; including retail loans of Rs.28,000 crore. In terms of banking customers, the deal will add 1.2 million banking customers, mostly in the affluent bracket.

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