Axis Bank acquires Citi Bank India’s consumer business in Rs11,603 crore

1 Mar 2023 , 11:26 AM

Axis Bank, India’s third-largest private sector lender, has completed the acquisition of Citibank India’s consumer business as well as the consumer business of its non-banking finance arm, Citicorp Finance (India) Ltd, for Rs11,603 crore rather than the Rs12,325 crore previously estimated.

Axis Bank has officially taken ownership of Citibank’s India consumer and non-banking financial company (NBFC) consumer businesses, according to a notice provided to the stock exchanges. The transfer took effect on March 1, 2023, at 12:01 AM, in compliance with the agreed contractual terms and settlement of payment, said the bank.

The cash consideration for the acquisition is Rs11,603 crore based on the contracted computation of the closing position of assets, assets under management, and liabilities as of January 31, 2023.

In March of last year, Axis Bank announced an all-cash acquisition of Citibank India’s retail business for Rs12,325 crore. Citi’s credit cards, retail banking, wealth management, and consumer loan businesses were included in the transaction, as well as the consumer business of its non-banking financial company, Citicorp Finance (India) Limited.

Citi Bank’s sale was part of Chief Executive Jane Fraser’s plan to restructure the company by exiting retail banking operations in 13 countries where it lacks the scale to compete.

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