CCI through its Twitter account said, "Commission approves acquisition of Citibank, N.A.’s and Citicorp Finance (India) Limited’s undertakings comprising of their consumer banking activities by Axis Bank."
On BSE, Axis Bank shares closed at ₹706.35 apiece down by ₹21.85 or 3%. Its market cap was around ₹2,16,951.64 crore.
Axis Bank entered into an agreement to acquire Citibank’s consumer businesses in March this year.
Here's how Axis Bank will benefit from the acquisition:
- Acquisition of ~3 million unique customers of Citibank India to enhance Axis Bank’s presence in the key identified growth segments.
- Axis Bank’s Cards balance sheet to grow by 57% with an additional ~2.5 million Citibank cards, making it one of the top 3 Cards businesses in the country.
- Axis Bank’s large loan book would be complemented by Citibank’s affluent customer segment, creating product and branch footprint synergies.
- Valuable addition of ₹1,109 billion AUM from Citi Wealth & Private Banking products to augment and reinforce Axis’ Burgundy brand, making it the 3rd largest by combined AUM in the wealth management space.
- Addition of aggregate Deposits of ₹502 billion, of which 81% is CASA.
- 1,600+ Suvidha Corporate relationships with more than 1 million customers and an average salary of ₹70,000 per month to strengthen Axis Bank’s Salary Business.
- Citibank’s customers to get benefitted from Axis Bank’s augmented scale, larger geographical reach, and width of products and offerings.
- Post the acquisition, Axis Bank will have ~ 28.5 million Savings Accounts, 2.3 lakh+ Burgundy customers, and 10.6 million Cards.
- Axis Bank is set to access world-class CitiPhone Banking prowess, to ensure continuity of service excellence for Citibank’s customers, and enhancement of services for Axis Bank customers.
- Axis Bank will gain access to 7 offices, 21 branches, and 499 ATMs across 18 cities
In its statement on March 30, Axis Bank said, the acquired portfolio would increase the Bank’s credit card customer base by ~31% with an additional 2.5 million cards, which will in turn bolster the Cards balance sheet position to be amongst the top 3 players in the Indian market. Moreover, the wealth and private banking portfolio will add great value to the Axis Burgundy business, further accelerating its growth ambitions in that segment. On an overall basis, the proposed transaction will add ~7% to the Bank’s deposit base (with ~12% increase in CASA) and ~4% increase in advances.
