Axis Bank has said its card business will become one of the top three in the country after the integration of Citi.
New Delhi: Axis Bank will acquire US-based Citi’s consumer business in India for Rs 12,325 crore in one of the largest deals in the Indian financial services space which will help it close the gap with larger peers like ICICI Bank and HDFC Bank.
Axis Bank will takeover loans, credit cards, wealth management and retail banking operations of Citibank. The deal will lead to acquisition of 30 lakh unique customers and 3,600 in-scope consumer employees of Citibank in Axis Bank.
Citi has been in India since 1902 and started its consumer banking activities in 1985.
But After Axis-Citi take over, what will happen to Citi bank customers, bank branches and its employees? Check 10 big points here
1. Axis Bank has said that all the Citi Bank’s 21 branches in prime locations will be retained.
2. Axis Bank is also keen to absorb nearly all the 3,600 employees working for the consumer banking business of Citi and will be eventually making offers to them at par with their current emoluments, and also raise the payouts to its existing employees for parity, Chaudhry said.
3. With Axis Bank taking over retail banking operations of Citibank in India, 30 lakh account and credit card holders of the US banking giant will have to indicate if they are willing to migrate their business to the new owner, Axis Bank said.
4. If the customers agree to Axis managing their business, their accounts, credit cards and other business will change over, else the relationship will terminate and they can exit with their deposits, it added.
5. Axis Bank managing director Amitabh Chaudhry said Citibank’s customers will continue to avail all the rewards, privileges and offers to which they were previously entitled.
6. Axis Bank and Citibank together will ensure continuity of superior customer service levels, even post-closing of transaction, across all customer channels.
7. All Citibank customers will have to give consent to become Axis Bank customers after the deal gets regulatory approval.
8. The transaction is expected to take 9-12 months to complete. The transaction is expected to close in the first half of calendar year 2023, subject to requisite regulatory approvals, according to a statement by Citibank.
9. Customers will specifically benefit from Axis Bank’s wider geographical reach and comprehensive service offerings, along with One Axis capabilities that extend across all its subsidiaries, said Axis Bank.
10. Digital banking and the highly rated Axis Mobile app offering 250+ services will be an added advantage for customers having immediate access to view and transact across product categories such as deposits, investments, payments and protection solutions.