Axis Bank acquires Citibank’s Retail Business in India

In April 2021, Citibank, a well-established global bank, made public its decision to withdraw from the retail sector, aiming to redirect its focus towards more lucrative ventures. Subsequently, following this announcement, Citibank experienced a swift decline in its credit card customer base. Amidst widespread speculation, Axis Bank has officially confirmed its acquisition of Citibank’s Retail business. This encompasses not only credit cards but also involves the acquisition of wealth management services, retail customer accounts, and more. The entire transaction is valued at approximately $1.6 billion.

Axis Bank has secured the acquisition of Citibank’s consumer business

Axis Bank, with an impressive credit card base of approximately 8.6 million, is set to acquire the consumer business of Citibank. Notably, Citibank’s credit card base is considerably lower than that of Axis Bank. The consumer business of Citibank encompasses various facets, including retail banking, Citi credit cards, consumer loans, and wealth management. Citibank, with about 35 branches, a workforce of around 3,600 employees, over 2.5 million account holders, 1.2 million loan accounts, and 2.6 million credit cardholders, is part of this transaction.

Additionally, Citibank’s non-banking financial entity, Citi Corp (India) Finance Limited, will be part of the acquisition. Approximately 3,600 employees currently working for Citibank’s consumer business will transition to Axis Bank as part of this deal. The integration process is anticipated to span 12 to 18 months. During this transition period, Citibank is committed to ensuring the smooth handling of its customer base, aiming to prevent any disruptions in their service.

Impact of the Acquisition on Credit Card Customers

As mentioned earlier, Citibank is set to manage its credit cardholders and other clients over the next 12 to 18 months, ensuring minimal impact on customers until the integration is complete. Following this period, Axis Bank is anticipated to transition Citibank credit cardholders to equivalent cards within Axis Bank’s extensive portfolio. Citibank currently offers six credit cards, while Axis Bank boasts a diverse range, making it a straightforward process for the card issuer to identify a comparable card within its portfolio.

Conclusion

Citibank, the pioneer in introducing credit cards to Indians, is set to exit its consumer business in the country. While this news may disappoint loyal customers, there’s assurance that the business has smoothly transitioned to another reputable card issuer, Axis Bank. As a result, Axis Bank has emerged as a prominent player in the market. The well-being of Citibank account holders, credit card users, and employees has been carefully considered in this transition. There is confidence that the acquisition will be a resounding success, alleviating any concerns among stakeholders

Frequently Asked Questions(FAQs)

Q1: Why is Axis Bank acquiring Citibank’s Retail Business in India?

A1: Axis Bank is acquiring Citibank’s Retail Business in India as part of a strategic move to strengthen its position in the market and enhance its retail banking offerings.

Q2: How will this acquisition impact Citibank customers in India?

A2: Citibank customers in India will experience a seamless transition, as their accounts and services will be transferred to Axis Bank. Axis Bank has taken measures to ensure a smooth process with minimal disruption for customers.

Q3: What changes can Citibank credit card holders expect after the acquisition?

A3: Citibank credit card holders will now be serviced by Axis Bank. They can continue using their existing cards, and Axis Bank will honor the terms and benefits associated with Citibank credit cards.

Q4: Will there be any impact on existing Citibank account holders?

A4: Existing Citibank account holders will be transferred to Axis Bank, ensuring continuity of banking services. Axis Bank will communicate any changes in account terms or procedures directly to customers.

Q5: How does Axis Bank plan to address concerns of Citibank employees affected by the acquisition?

A5: Axis Bank is committed to employee welfare and will provide a smooth transition for Citibank employees affected by the acquisition. Detailed plans and support mechanisms are in place to address their concerns.

Q6: Will there be any changes in the branch network as a result of this acquisition?

A6: Axis Bank will assess the branch network and make strategic decisions to optimize services. Any changes will be communicated transparently to customers, and efforts will be made to minimize disruptions.

Q7: How can customers get more information or assistance regarding the acquisition?

A7: Customers can reach out to dedicated helplines, visit Axis Bank branches, or access information on the official websites of both Citibank and Axis Bank for updates and assistance related to the acquisition.