Axis Bank, India’s third-largest private sector lender, has completed the acquisition of Citibank India’s consumer business as well as the consumer business of its non-banking finance subsidiary, Citicorp Finance (India) Ltd, for Rs 11,603 crore rather than the Rs 12,325 crore previously expected.
In a notification to the exchanges, Axis Bank said “…the businesses of Citibank NA and Citicorp Finance Ltd stands transferred to Axis Bank and the Bank becomes the owner of Citibank’s India consumer business and NBFC consumer business effective from 00.00.01 hrs on March 1, 2023 subject to and in accordance with the requirements and terms of the agreed contractual documentation and settlement of consideration”.
The cash consideration for the acquisition is Rs 11,603 crores based on the contracted computation of the closing position of assets, assets under management, and liabilities as of January 31, 2023.
“The said cash consideration is subject to contractual and customary true up and / or true down adjustments and changes in the business position from January 31, 2023 to 24:00 hours February 28,2023,” the bank said in the exchange notification.
In March of last year, Axis Bank announced an all-cash acquisition of Citibank India’s retail division for Rs 12,325 crore. Citi’s credit cards, retail banking, wealth management, and consumer loan operations were included in the transaction, as well as the consumer business of its non-banking financial subsidiary, Citicorp Finance (India) Ltd.
Citi’s sale was part of Chief Executive Jane Fraser’s goal to restructure the company by quitting retail banking operations in 13 countries where it lacks the scale to compete.
Speaking on the occasion, Amitabh Chaudhry, MD&CEO, Axis Bank said, “We welcome over 2.4 million customers and ~3200 employees to our Axis family ‘Dil Se’, as we successfully conclude the first leg of integration. This is a significant milestone in Axis’ journey of growth and leadership in the Banking industry and is set to bring great value for all stakeholders involved. We have a strong balance sheet, comfortable capital levels, and the right team and customer segments to further realize our ambitions.”
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He added, “Citibank has a culture that is much like ours, with a commitment to best-in-class customer service, people focus and community engagement. Axis Bank already has a rich network of Citi alumni across the hierarchy, which reflects of the cultural alignment between the two organizations. Given the expertise that the new employees will bring to the table, we view them as a significant force to help drive our GPS objectives. The premium portfolio and business synergies through this deal will help accelerate and add further momentum to our already robust plans across priority segments.”
Subrat Mohanty, Group Executive & Head – Banking Operations and Transformation, Axis Bank said, “We are delighted with the addition of Citi’s premium consumer business and a high quality team of colleagues to Axis Bank. We expect our customers to experience the value of this integration with newer, innovative products and world class customer practices. Axis Bank is positioned strongly to power India’s growth story.”
Arjun Chowdhry, Group Executive & Head – Cards, Payments & Wealth, Axis Bank said, “Axis Bank is committed to building a strong consumer banking business in India, and already has deep market presence, across all segments and geographies. All ~3200 Citi colleagues, who carry a strong and diversified skill set, are extremely excited to join the Axis family and further build on its growth ambitions. We look forward to collaborating with Axis’ experienced senior leadership team and diverse talent pool, as we join the 88,000+ strong, dedicated workforce and live up to the brand’s credo ‘Dil Se Open’.”
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