With Axis Bank taking over retail banking operations of Citibank in India, 30 lakh account and credit card holders of the US banking giant will have to indicate if they are willing to migrate their business to the new owner.
If the customers agree to Axis managing their business, their accounts, credit cards and other business will change over, else the relationship will terminate and they can exit with their deposits.
Announcing the Rs 12,325-crore deal to acquire Citigroup's India consumer banking business, Axis Bank managing director Amitabh Chaudhry said Citibank’s customers will continue to avail all the rewards, privileges and offers to which they were previously entitled.
Axis Bank and Citibank together will ensure continuity of superior customer service levels, even post-closing of transaction, across all customer channels, he said.
All Citibank customers will have to give consent to become Axis Bank customers after the deal gets regulatory approval, he said, adding, the transaction is expected to take 9-12 months to complete.
The transaction is expected to close in the first half of calendar year 2023, subject to requisite regulatory approvals, according to a statement by Citibank.
Further, Chaudhry said, Citibank customers will specifically benefit from Axis Bank's wider geographical reach and comprehensive service offerings, along with One Axis capabilities that extend across all its subsidiaries.
Digital banking and the highly rated Axis Mobile app offering 250+ services will be an added advantage for customers having immediate access to view and transact across product categories such as deposits, investments, payments and protection solutions, he said.
Moreover, the world-class Citi Phone Banking will ensure service excellence for both Citibank and Axis Bank customers.
In line with growth ambitions, Axis Bank will takeover loans, credit cards, wealth management and retail banking operations of Citibank.
The deal will lead to acquisition of 30 lakh unique customers and 3,600 in-scope consumer employees of Citibank in Axis Bank.
Axis Bank's cards balance sheet is likely to grow by 57 per cent with an additional 25 lakh Citibank cards, making it one of the top three card businesses in the country. It would also lead to addition of aggregate deposits of Rs 50,200 crore, of which 81 per cent is Current Account Savings Account (CASA).
Valuable addition of Rs 1,10,900 crore AUM (Asset Under Management) from Citi Wealth and Private Banking products is expected to augment and reinforce Axis' Burgundy brand, making it the 3rd largest by combined AUM in the wealth management space.