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Private sector lender Axis Bank hopes to close the fiscal with about 1.2 crore cards and is optimistic that the Citi deal will further expand it to close to 1.45 crore.
“We should be able to close this year at roughly around 1.2 crore cards. At some point of time, the Citibank portfolio will also get added, which has another 25 lakh cards. If you put the two together, we would be close to 1.45 crore, which is a formidable number,” said Sanjeev Moghe, President and Head – Cards and Payments, Axis Bank.
In an interaction with BusinessLine, Moghe said the Citi deal is underway and the bank has filed for approvals, which will come in at some point of time.
He said the Axis Bank and Citi credit card business will complement each other.
“Citi is very strong in the top eight markets…almost all of its 25 lakh cards are in the top eight markets. Our share in these markets is lower,” Moghe noted.
Further, Axis Bank’s current portfolio is a bit more mass affluent and emerging affluent, while Citi’s portfolio consists more of the affluent and super affluent.
“Citi obviously has very strong processes, their phone banking experience is very good. Some of these things we at Axis hope to learn and imbibe in our own portfolios and processes,” Moghe said.
“I think these are the three key points that make the deal complementary in a jigsaw sense to us. What we don’t have, Citi brings to the table. And as you add the two together, the jigsaw becomes far more formidable,” he said.
On the decline in Citi’s credit card base in India, Moghe said it is not a matter of concern, and there has been “no change in trajectory”.
Axis Bank had, on March 30 this year, announced that it would acquire Citi’s India consumer businesses for about $1.6 billion in cash consideration.
While Axis Bank had 94.75 lakh credit cards in force at the end of May 2022, Citi had 25.5 lakh outstanding credit cards in the same period.
Moghe added that Axis Bank has witnessed good growth momentum in its cards business in terms of issuances and spends.
“Risk is under control. Spends are looking good and are growing. Our balance sheet is clean. Indicators look good,” he said, adding that the lender will announce more partnerships in the course of the year.
Axis Bank had recently announced a partnership with EazyDiner to launch a Dining Delights programme.
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