Axis Bank Acquires Citi Bank India: What Will Happen To 30 Lakh Customers, 3600 Employees?
Axis Bank will acquire US-based Citi’s consumer business in India for Rs 12,325 crore.
This is one of the largest deals in the Indian financial services space which will help it efficiently compete against larger peers like ICICI Bank and HDFC Bank.
What Axis Gains
It will take over loans, credit cards, wealth management and retail banking operations of Citibank.
With this deal, Axis Bank will add 30 lakh unique customers and 3,600 in-scope consumer employees of Citibank.
The question remains, what happens to Citi bank customers, bank branches and its employees.
Employees To Be Absorbed
All the Citi Bank’s 21 branches in prime locations will be retained.
All the 3,600 employees working for the consumer banking business of Citi will be absorbed.
Axis Bank will make them offers at par with their current emoluments, and also raise the payouts to its existing employees for parity.
Customers Can Consent Or Decline To Migrate
The 30 lakh account and credit card holders of Citibank India will have to indicate if they are willing to migrate their business to the new owner.
If they agree to migrate to Axis, their accounts, credit cards and other business will change over.
If they decline, the relationship will terminate and they can exit with their deposits.
No Change In Earlier Benefits
Citibank’s customers will continue to avail all the rewards, privileges and offers which they previously enjoyed.
Customers will benefit from Axis Bank’s wider geographical reach and comprehensive service offerings, along with One Axis capabilities that extend across all its subsidiaries.
Access To Comprehensive Digital Banking App
They will also enjoy access to Digital banking through the Axis Mobile app offering 250+ services.
It includes immediate access to view and transact across product categories such as deposits, investments, payments and protection solutions.
Upholding High Standards
Even after the transaction is closed, both Axis Bank and Citibank will ensure maintenance of superior customer service levels across all customer channels.
The transaction is expected to take 9-12 months to complete and close in the first half of calendar year 2023.
This is subject to requisite regulatory approvals.