Axis Bank and Citibank announced that their respective boards have approved the acquisition of Citibank’s consumer businesses in India by Axis Bank.
Axis Bank will pay a consideration up to ₹12,325 crore to Citibank for the acquisition. So, what will happen to Citi’s credit and debit card customers. Here’s what we know so far. Key details
Post the acquisition, Axis Bank will have 28.5 million Savings Accounts, 2.3 lakh-plus Burgundy customers and 10.6 million cards.
The transaction will also include approximately 3,600 Citi employees supporting the consumer businesses in India, who will transfer to Axis upon completion of the proposed transaction
Axis Bank will takeover loans, credit cards, wealth management and retail banking operations of Citibank.
Citibank consumers will continue to avail avail all the rewards, privileges and offers to which they were previously entitled after the acquisition, according to a statement from Axis Bank MD Amitabh Chaudhry.
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.
All Citibank customers will have to give consent to become Axis Bank customers after the deal gets regulatory approval. The transaction is expected to take 9-12 months to complete.
Citibank’s customers will also get benefitted from Axis Bank’s augmented scale, larger geographical reach and width of products and offerings
Axis Bank is set to access CitiPhone Banking prowess, to ensure continuity of service excellence for Citibank’s customers, and enhancement of services for Axis Bank customers
The Bank will gain access to 7 offices, 21 branches and 499 ATMs across 18 cities.
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.