new Delhi: India’s third-largest private sector bank Axis Bank on Wednesday announced the purchase of Citigroup’s Indian consumer banking business, including credit cards, retail banking, consumer credit and wealth management, for Rs 12,325 crore, according to a report in PTI.
Private sector lender Citibank will acquire around 3 million customers of India and increase its credit card portfolio by 31 per cent.
The deal will provide access to 7 offices, 21 branches and 499 ATMs in 18 cities; And about 3,600 in-scope consumer employees of Citibank will be absorbed into Axis Bank, the private sector lender said in a statement.
Businesses include credit cards, retail banking, home loans and wealth management. Citigroup has 35 branches in the country and employs around 4,000 people in the consumer banking business.
According to a report, with factors such as job security and competition concerns for existing Citigroup employees, Axis Bank emerged as the buyer, beating rivals.
Axis Bank said in a statement, “To enhance and strengthen Axis’ Burgundy brand, an AUM of Rs 1.11 lakh crore has been added from Citi Wealth and private banking products, making it the third largest by combined AUM in the wealth management sector. Is.”
Axis Bank said its card balance sheet will grow by 57 per cent with the addition of 2.5 million Citibank cards, making it one of the top 3 card businesses in the country.
Once the deal gets the necessary approvals, sources said, the size of Axis Bank’s balance sheet will expand and there will be a significant jump in the retail sector.
However, Citigroup Chief Executive Officer Jane Fraser said in February that the planned India retail sale is part of a restructuring to simplify the US lender, spin off its retail banking operations in 13 countries in Asia and Europe, and create high-growth markets. Focusing on businesses such as money management.
US banking major Citigroup announced its plan to exit the retail banking business in India in April 2021 as part of its global strategy.
Citigroup entered India in 1902 and started consumer banking business in 1985.
In addition to the institutional banking business, Citigroup in India will continue to focus on offshoring or global business support provided from centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.