Bangalore, India, March 2, 2023
According to this deal, Axis Bank has purchased Citibank’s India consumer business as well as its consumer business for non-banking financial companies (NBFCs).
Axis Bank announced last year that it was starting the process of acquiring Citibank’s consumer and non-banking finance businesses in India.
Prior to evaluating the closing position of Citibank India’s assets, assets under management, and liabilities as of January 31, 2023, Mumbai-based Axis Bank completed the acquisition of the India consumer business of the foreign bank held by Citigroup for Rs 12,325 crore. The acquisition has a post-evaluation value of around Rs 11,603 crore. According to a recent exchange filing by Axis Bank, this deal involved the acquisition of Citibank’s India consumer business from Citibank N.A. or CBNA and the consumer business for non-banking financial companies (NBFCs) from Citicorp Finance (India) Limited or CFIL.
The filing read, “We now wish to inform you that completion of the acquisition of Citibank’s India consumer business from CBNA and the NBFC consumer business from CFIL as under process, without values being assigned to individual assets and liabilities for either business shall happen on March 1, 2023.”
The filing added the acquisition of the consumer business of Citibank India is in accordance with the requirements and terms of the agreed contractual documentation and settlement of consideration.
The filing further added, “Given the structure of the transaction, the aforesaid cash consideration along with any true up or true down shall be accounted for as goodwill and other intangibles, which will be entirely amortized for accounting purposes in 2023.”
It further stated, “The trademarks “Citi,” “Citibank,” “Citigroup,” the Arc design and all similar trademarks and derivations thereof are used temporarily under license by Axis Bank from Citigroup Inc. and related group entities.”
The acquisition will help Axis close the gap with larger peers like ICICI Bank and HDFC Bank. From today, March 1, Citibank’s home and personal loan, credit card, and insurance businesses have now come under the control of Axis Bank.
So how will this acquisition impact the user experience? Customers of Citibank India’s consumer banking division can continue utilizing their current Citi products and/or services, branches, ATMs, internet banking, and Citi Mobile App as usual, according to the website of the bank. In India, Axis Bank offers consumer banking products under the Citi name, while Citi India offers other services.
Just a few days ago, Citibank removed its sign from its iconic Kanak Building office on Kolkata’s Chowringhee road, where the bank started its operations in India in 1902. In 2021, Citigroup announced its plans to exit 13 international consumer banking markets, shifting its focus to wealth management and away from retail banking in places where it is small.
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