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CCI Approves Axis Bank's Take Over Of Citi's India Retail Assets
On July 26, the Competition Commission of India approved the private sector bank-Axis Bank's proposal to acquire Citibank's consumer business for a financial consideration of Rs. 12,385 crore.
In March this year, the US based Citibank expressed its intent to sale its consumer banking businesses including credit card, retail banking, wealth management and consumer loans to Axis Bank. This was as part of the former's plans to wind up retail operations in 13 markets.
The deal expected to be completed in the first half of the calendar year 2023 shall also include the transfer of about 3600 Citi employees to Axis Bank.
Notably, the sale doesn't includes Citi's institutional client business in India.
Post the transfer of Citi's business, Axis Bank shall be among the top 3 card businesses in India. At present, the bank has a portfolio of 86 lakh cards and the deal shall add another 25 lakh cardholders.
The bank with a retail book of as much as Rs. 4 lakh crore will take over Citibank India's unique customer base of 30 lakh.
The foreign bank under the first woman CEO made a decision to exit some of the markets to protect its capital and limit focus to main higher-yielding revenue streams. Citi forayed into consumer business in India in 1985.
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