According to Axis Bank, both parties have made integration progress and obtained the necessary customer consent and approvals. According to its exchange filing, Axis Bank Ltd. will complete the acquisition of two Citibank units by March 1, 2023
Overview
On March 30, 2022, Axis Bank signed an agreement to purchase Citibank NA’s India retail business and Citicorp Finance (India) Ltd., a non-bank financial company under the US-based bank, for Rs 12,325 crore.
Axis Bank estimated the transaction would take 9-12 months to complete. Both businesses will be acquired as going concerns, with no individual assets or liabilities assigned values.
Axis Bank said in a filing, “Both parties made progress on integration and obtained additional customer consents and approvals that may be required. Based on the progress made to date, we estimate a reasonable possibility of completing the acquisition by March 1, 2023, which is within the 12-month timeline we previously indicated,”
The transaction is subject to the completion of customary and contractual conditions following the provisions of Citibank and Citibank Finance (India), according to the Indian lender. Axis Bank will receive an interest-earning advances portfolio worth Rs 27,400 crore as part of the transaction, which includes credit cards, mortgages, personal loans, asset-backed finance, and small business banking.
End Note
The transaction involves the transfer of a credit card portfolio with 25 lakh users, deposits worth Rs 50,200 crore, and wealth management assets worth Rs 1.1 lakh crore. Axis Bank will also acquire seven offices, 21 branches, and 499 ATMs currently owned and operated by Citi.
