New Delhi, March 2 (IANS) Axis Bank, one of India's largest private sector banks, has completed the acquisition of Citibank's consumer business in an accelerated time frame of within 7 months post receipt of the CCI approval.
The deal has been closed with Axis Bank paying a total purchase consideration (after customary & contractual adjustments) of Rs 11,603 crore to Citibank India, a statement by Axis Bank said.
The transaction comprises the sale of the consumer businesses of Citibank India, which includes loans, credit cards, wealth management, and retail banking operations.
The deal also includes the sale of the consumer business of Citi's non-banking financial company, Citicorp Finance (India) Ltd, comprising asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.
The acquisition is a healthy strategic fit in line with Axis Bank's GPS (Growth, Profitability & Sustainability) strategy and its focus on premium segment growth. The Bank has gained access to the large, affluent and profitable customer franchise of Citibank, which aligns well with its premiumisation strategy.
With the acquisition, comes a quality credit card franchise with one of the highest wallet shares in premium cards, that is complementary and consolidates Axis' position in the cards business, market share improving from 11.4 per cent to 16.2 per cent.
The acquired portfolio would increase Axis Bank's credit card customer base by 19 per cent, with an addition of 1.8 million cards.
With the highest number of transactions per card across the industry and digitally engaged customers, the deal would strengthen Axis Bank's position in the top 8 metros, while also providing the opportunity to adopt global best practices in client servicing and operations through Citi Phone banking.
Additionally, the acquisition of 2.4 million customers of Citibank India enhances Axis Bank's presence in the key growth segments, complimenting the existing Axis franchise.
Post-acquisition, Axis Bank gains ready access to highly affluent wealth customers resulting in a 33 per cent addition to overall AUM of Burgundy Private Banking portfolio, further strengthening the existing franchise. With an added AUM of Rs 947 billion across Citi products in wealth management and private banking, the current AUM of the bank's wealth management portfolio stands at Rs 3,785 billion, making it the 3rd largest in the industry.
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