Citibank india, Financial services company

Axis Bank, the country's third-largest private sector lender, on Wednesday said it will acquire Citibank's India consumer banking businesses covering loans, credit cards, wealth management and retail banking operations for Rs 12,325 crore.The transaction comprises the sale of the consumer businesses of Citibank India, which include credit cards, retail banking, wealth management and consumer loans.The deal also includes the sale of the consumer business of Citi's non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.Axis Bank looks at this acquisition as a healthy strategic fit. It will gain access to the large and affluent customer franchise of Citibank having a bouquet of fee-oriented and profitable segments, that include a quality credit card portfolio, affluent wealth management clientele, meaningful deposits with 81 per cent being CASA, along with a strong consumer lending portfolio, Axis Bank said in a statement."We are delighted with the addition of an enviable retail franchise and a high-quality talent pool as we continue our journey towards becoming a premier financial services brand, in line with our GPS strategy framework," Amitabh Chaudhry, MD and CEO, Axis Bank, said in a statement.Post the acquisition, Axis Bank will have 28.5 million Savings Accounts, over 2.3 lakh Burgundy customers and 10.6 million Cards."This is a significant milestone in Axis' journey of growth and leadership and will bring in great value for all stakeholders. The amplified scale and width of offerings, the diversified portfolio of products and global best practices will enhance customer experience, while greater synergies both on revenue and cost side will augment value for the new franchise," Chaudhry said.The acquired portfolio would increase Axis Bank's credit card customer base by nearly 31 per cent 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 per cent to the Bank's deposit base (with 12 per cent increase in CASA) and 4 per cent increase in advances.The deal excludes Citi's institutional client businesses in India."We continue to remain committed to contributing to India's growth and development as we deepen our presence through our institutional businesses and our community initiatives," said Citi India CEO, Ashu Khullar."Citi will also continue to harness India's rich talent pool in the areas of Technology, Operations, Analytics, Finance and allied functional areas through its network of Citi Solution Centers that are located in five cities in India and support our global businesses," Khullar said.As part of the deal, nearly 3,600 employees of Citibank will be absorbed in Axis Bank."We look forward to collaborating with Citi's experienced senior leadership team and diverse talent pool, as they join Axis' 86,000+ strong, dedicated workforce," Chaudhry said.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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