One of India’s top private sector banks, Axis Bank, has successfully acquired Citibank’s India Consumer Business as well as Non-Banking Financial Company (NBFC) Consumer Business from Citibank N.A. (CBNA) and Citicorp Finance (India) Ltd. for 11,603 rupees ($1.5 billion) (CFIL). Axis Bank will now own Citibank’s India Consumer Business as well as NBFC’s Consumer Business as of March 1, 2023, following the conclusion of this acquisition, which will transfer the businesses of CBNA and CFIL to the bank.
The acquisition will strengthen Axis Bank’s position in the Indian financial services sector and give its retail banking company a major boost. Additionally, it will assist the bank in growing both its product line and clientele, especially in the wealthy as well as high net worth market. Axis Bank has purchased the credit card portfolio of Citibank, including its high net-worth credit card clients, as well as the personal loan portfolio of Citibank, which contains unsecured loans and mortgages. Additionally, the branch network, digital assets, as well as client connections of Citibank will be taken over by the bank.
The purchase fits with Axis Bank’s plan to expand its retail business and boost its marketplace share in the Indian banking sector. The bank has been concentrating on improving its customer experience and developing its digital capabilities, and the purchase of Citibank’s consumer division will assist it in doing so. Axis Bank stated in a regulatory filing that it was committed to upholding the high standards of service that Citibank’s clients have come to anticipate and that it would make the transition easy for them.
Overall, the purchase of Citibank’s India Consumer Business as well as NBFC Consumer Business marks a significant accomplishment for Axis Bank and is anticipated to spur development and add value for the bank’s stakeholders in the long run.
