Axis Bank on Wednesday announced that it has completed acquisition of Citibank’s India consumer business and non-banking financial company (NBFC) consumer business. After the evaluation of closing position of assets, assets under management (AUM) and liabilities on January 31, 2023, the transaction has been finalized for Rs 11,603 crore.
As per an exchange filing by Axis Bank. “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 amortised for accounting purposes in FY2023.”
Last year in March, Citigroup-owned Citibank had announced the sale of its consumer banking business which includes credit cards, retail banking, wealth management, and consumer loans to Axis Bank. The deal was a part of a strategy to exit consumer franchises in 13 markets spanning across Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, Philippines, Poland, Russia, Taiwan, Thailand and Vietnam for Rs 12,325 crore.
Citibank India’s website stated that, “Consumer banking customers can continue to use all existing Citi products and/or services, branches, ATMs, internet banking and Citi Mobile App as usual. Axis Bank is the provider of Citi branded consumer banking products in India temporarily and Citi India is providing certain services in respect of those products.”
Post this deal, the Mumbai headquarterd Axis Bank will have access to nearly 30 lakh new customers of Citibank India including seven offices, 21 branches, and 499 ATMs across 18 cities.
In July 2022, the Competition Commission of India (CCI) gave its approval to the deal.