Axis Bank has completed the acquisition of Citibank’s consumer banking business, for a cash consideration of ₹11,603 crore, in a span of seven months since the final approval from CCI.

In a press meet to announce the development, Axis Bank said it has acquired 18 lakh credit customers, deposits worth about ₹40,000 crore of which 77 per cent are CASA deposits, 1,600 Suvidha corporate salary accounts and wealth management business worth ₹94,700 crore.

It has also acquired aggregate end net receivables (ENR) of ₹27,300 crore across credit cards, mortgage, personal loans, asset backed finance and small business loans. Axis Bank now has aggregate deposits of ₹8.9-lakh crore, with the share of CASA deposits rising by 150 bps to 46 per cent of total deposits.

Post the merger, the bank’s credit card customer base has increased 19 per cent, taking its market share to 16.2 per cent from 11.4 per cent. Arjun Chowdhry, Group Executive and Head — Cards, Payments and Wealth, said all of Citibank’s co-branded credit cards will remain operative and new acquisitions will continue under the Axis brand.

Gurugram: A bank entrance showing signage for Citibank and Axis bank, in Noida, Wednesday, March 1, 2023

Gurugram: A bank entrance showing signage for Citibank and Axis bank, in Noida, Wednesday, March 1, 2023

Employee addition

MD and CEO Amitabh Chaudhry, along with the senior management of the bank, said 80 per cent of Citibank India’s customers and 96 per cent employees consented to the shift to Axis Bank, leading to the bank acquiring 24 lakh customers and 3,200 employees, along with Citi’s six offices and 21 branches.

The bank now aims to complete the integration of the acquired business within 18 months, which will include rationalisation of duplicate customer accounts and cards and any BAU (business as usual) attrition in employees and customers, Chaudhry said, adding that over 60 levers of cost and value synergies have been identified for the integration.

The private lender will take a one-time charge of ₹1,500 crore for the acquisition in its P&L statement for Q4 with respect to writing down Citibank’s goodwill cost and for other harmonisation and transition costs. The remaining expenses will be amortised over the 18-month period as integration is undertaken, he added.