CRISIL reaffirms existing credit ratings of Axis Bank

15 Mar 2023 , 02:52 AM

Axis Bank Limited has informed that the credit rating agency CRISIL Ratings has reaffirmed its ‘CRISIL AAA/CRISIL AA+/Stable/CRISIL A1+’ ratings on its debt instruments.

CRISIL Ratings has taken note of Axis Bank’s March 1, 2023, announcement that it has completed the acquisition of Citibank India’s consumer business , which include loans, credit cards, wealth management, and retail banking operations. 

The transaction aims to strengthen and expand Axis Bank’s market position in wealth and private banking. It gives Axis Bank access to 1.8 million credit card holders and an aggregate deposit base of Rs39,900 crore (on a pro forma basis, the combined CASA ratio will improve by 150 basis points to 46%).

Citibank has agreed to assist and facilitate the seamless integration of its business with Axis Bank’s platform by providing necessary services and support for a period of 12-18 months in accordance with the Transition Service Agreement (TSA).

The bank’s overall ratings continue to reflect its strong capitalization, market position, and comfortable resource profile. These advantages are mitigated in part by the average asset quality, said CRISIL in its rating rationale.

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