Axis Bank announced in a public offering filing on Wednesday that it has completed the acquisition of Citibank’s Indian consumer business from Citibank NA (CBNA) and Citi’s non-bank finance company, Citicorp Finance India (CFIL), which includes the asset-backed finance business Commercial vehicle and construction machine loans as well as the personal loan portfolio. “Accordingly, the businesses of CBNA and CFIL will be transferred to Axis Bank and the bank will become the owner of Citibank’s India Consumer Business and NBFC Consumer Business, effective 00:00:01 on March 1, 2023,” it said.
“The cash consideration for the acquisition based on the contractually agreed calculation of the closing position of assets, assets under management and liabilities as of January 31, 2023 is ₹11,603 crore,” it adds.
The transaction includes Citi’s lucrative credit card business with approximately 2.5 million cardholders, which will expand Axis Bank’s credit card customer base by approximately 31%. The bank’s card balance sheet will grow by 57% after the acquisition, making it one of the top three card companies in the country. Overall, the proposed transaction will increase the bank’s deposit base by nearly 7% (with an approximately 12% increase in CASA) and advances by nearly 4%. However, this Axis-Citi deal does not include the latter’s institutional client business in India.
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