Axis Bank Acquires Citibank’s India Consumer Business


Share post:

Axis Bank Ltd completed its acquisition of Citibank’s India consumer business. (File)


Private lender Axis Bank Ltd said today it completed a deal to buy Citigroup Inc’s local consumer and non-banking finance businesses, marking the U.S. lender’s exit from its credit card and retail businesses in the country.

The deal value of 116.03 billion rupees ($1.41 billion) is based on the closing position of assets, assets under management and liabilities of Citi’s portfolio as of Jan. 31, Axis Bank said.

The consideration was subject to changes in the business’ position since then, said Axis Bank.

The deal, when announced in March 2022, was worth 123.25 billion rupees and is Axis Bank’s biggest-ever acquisition.

“Citi India consumer banking customers are now served by Axis Bank,” Citibank said on its website.

Citi was among the first international lenders to introduce credit cards in India in 1987, but it lost ground to larger players over the years.

In 2021, Citi Chief Executive Jane Fraser announced plans to exit its consumer businesses in 13 Asian and EMEA markets as part of a turnaround strategy.

The deal is expected to increase Axis Bank’s deposit base and loan book by 7% and 4%, respectively, and expand its credit card customer base by 31%.

Shares of Axis Bank rose 2.2% on Wednesday in their biggest intraday advance in four weeks.

They have risen about 15% since the deal was announced last year, compared with a 13% rise in the Nifty Private Bank index in the same period.

Axis Bank will hold a press conference on the deal after the market closes on Wednesday.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Featured Video Of The Day

Q3 GDP Expectations


Please enter your comment!
Please enter your name here


Related articles

Watch: Rashmika Mandanna, Tamannah Bhatia Gear Up For IPL 2023 Opening Ceremony

Rashmika Mandhana will be a part of the IPL 2023 opening ceremony© TwitterTamannah Bhatia and Rashmika Mandhana...

Donald Trump indicted by grand jury

A Manhattan grand jury’s indictment of former President Donald Trump will set in motion a criminal process...