India’s private sector Axis Bank has bought the Indian business of global giant Citibank. In this deal, Axis has overtaken Kotak Mahindra, the country’s third largest private sector bank. Citibank customers will become Axis Bank customers once the transaction gets regulatory approval.
What will be the effect on customers?
Customers who have bank account, credit card in Citibank, then they do not have to worry. Under the deal, the business of Citibank will go to Axis Bank. Whether KYC will have to be done again, its information will also be given to the customers. The Reserve Bank of India along with Citibank, Axis Bank will also inform you about the necessary steps to be taken in this regard.
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The bank will take some steps at its level, you will have to take some steps, for example, wherever you have given the mandate to deposit your installments, bills, they will have to be informed again. At your office, PF office, share broker-mutual fund house, all such places will have to get the information related to the bank account amended. You will be provided time for this work.
Banking experts say that with this acquisition, customers of Citibank will now have to collect fresh cheques. Also, they will need fresh ECS approval for EMIs for mutual funds, home loans and other types of loans. If this happens, there will be no scope for default in their EMI. Along with this, the investment amount will also be deducted from the account at the right time.
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The deal will help Axis Bank continue its journey towards becoming a leading financial services brand, Axis Bank said in a statement. The wide range of offers, diverse product portfolio and best-understood services across the globe will further enhance the customer experience. Also, greater synergy between revenue and cost sides will also help in expanding the business.
Amitabh Choudhary, MD & CEO, Axis Bank says that this is a significant milestone in Axis’s growth and leadership journey and will greatly benefit all stakeholders. Given the expertise of Citi’s employees, we see them as an important and additional workforce to our existing team.
Axis Bank will have this benefit
As of March 31, 2021, Citi had loans of ₹68,747 crore and deposits of ₹1.66 trillion in India. Employees of Citibank’s India Consumer Business will also be transferred to Axis Bank. Citibank has about 35 branches across the country. These include branches in cities like Lucknow, Ahmedabad, Aurangabad, Bengaluru, Chandigarh, Faridabad, Gurugram, Jaipur, Kochi, Kolkata, Mumbai, Nagpur, Nashik, New Delhi, Pune, Hyderabad and Surat.
Citigroup announced last year
In April last year, Citigroup said it would exit the consumer business in 13 countries, including India. Apart from India, the bank had decided to exit retail business in Australia, Bahrain, China, Indonesia, Korea, Malaysia, Philippines, Poland, Russia, Taiwan, Thailand and Vietnam. Citibank focuses on four fund centers in Singapore, Hong Kong, the United Arab Emirates and London. The company will now shift its focus to large and lucrative institutional and wealth management businesses. Citibank’s Indian consumer business includes credit cards, home loans and retail banking.