Axis Bank has announced the completion of the acquisition of Citigroup’s India consumer business from Citibank NA.
The deal, announced in March 2022, has been closed for a cash consideration of $1.41 billion (Rs 11,630 crore) in one of the largest deals in the Indian financial services space.
Now Axis Bank will handle all of Citibank’s existing and future consumer business in the country.
It will help Axis close the gap with larger peers like ICICI Bank and HDFC Bank.
After being announced in March 2022,the acquisition has taken almost a year to complete.
Just days ago, Citibank took down its signboard from its landmark Kanak Building office in Kolkata’s Chowringhee road where the bank started its operations in India in 1902.
In 2021, Citigroup announced its plans of leaving retail operations in 13 international consumer banking markets including India.
It is now moving to wealth management and away from retail banking in places where it is small.
What the deal means for Axis Bank
On its website Axis Bank said that the acquisition of three million unique customers of Citibank in India will increase its presence in the key identified growth segments.
Axis Bank’s cards balance sheet will grow by 57 per cent with addition of an additional 2.5 million Citibank cards.
With the acquisition it now becomes one of the top three card businesses in the country.
The acquisition will also transfer more than one million customers and an average salary of ₹ 70,000 per month to Axis Bank, which will strengthen its salary business.
What will change for the customers?
Axis Bank said that Citibank’s customers will benefit from its augmented scale, larger geographical reach and width of products and offerings.
Axis bank now brings seven offices, 21 branches and 499 ATMs across 18 cities in India under its aegis.
Though both the banks have said the customers will not face any issues, reports claim they will have to once again undergo a Know Your Customer (KYC) routine.
However, to reduce inconvenience this process will be carried out in phases.
It now has as many as 30 lakh unique customers of Citibank India, its seven offices, 21 branches, and 499 ATMs across 18 cities.
Regarding customer bank account details
From March 1, Citibank’s home and personal loan, credit card and insurance businesses will come under the control of Axis Bank.
Bank account numbers, credit and debit card numbers, cheque books, and IFSC will remain unchanged.
Able to use Citibank’s existing products?
Existing Citi products, services, branches, ATMs, internet banking, and mobile app will remain functional as usual.
Regarding credit products
There will be no change in credit products structure.
The fees, charges, billing cycle, payment due date and bill payment methods for credit cards will be the same.
All standing Instructions with regards to loan payments, bill payments, or any other account transfer will also stay the same.
Rewards points across both credit and debit cards would continue to accrue and remain available for use.
Citibank’s insurance policies?
For insurance policies availed via Citi, the policy number, product features and benefits, renewal dates will continue with no change.
Citibank has surrendered its IRDAI licence and hence all requests related to insurance policies will be attended by Axis Bank.
Home loan account with Citi?
If the home loan is fully or partially disbursed and customers have consented to transfer it to Axis Bank, the same will be assigned to Axis Bank.
Do note that there will be no changes in the terms and conditions of existing credit facilities.
Access to Axis Bank’s ATMs
There will be uninterrupted access to any Axis Bank ATM.
Any charges currently applicable over and above free transactions at Citibank ATMs will be charged on transactions at Axis Bank ATMs as well.
Citigold ‘Global Banking Privileges’ for credit card customers
Citigold ‘Global Banking Privileges,’ however, are no longer available.