Private sector giant Axis Bank has bought the Indian consumer business of US Citibank for $1.6 billion. This deal is done completely in cash. According to the information given by Citibank on January 30, Axis Bank is going to take over the business of credit cards, retail banking, wealth management and consumer loans of Citibank.
Amitabh Choudhary, CEO, Axis Bank said that this deal is worth Rs 12,325 crore in which the entire business of Citibank will be done after transfer to Axis Bank. Along with this, Chaudhary said that it will take 8 to 9 months to get approval for this deal. He also said that it will take 12 to 18 months for Axis Bank to take over the entire business of Citibank.
On behalf of Citibank, it was said that in this deal, the business of Citibank’s non-banking financial company Citicorp Finance India Limited is also included. Axis Bank will also get asset-backed financing business in this. This includes commercial vehicle and construction equipment loans as well as personal loans.
What will happen to Citibank employees after takeover? Citibank of America had the largest business in India among the countries of Asia. Citibank has 35 branches in India in which total 3600 employees work. Let us tell you that in 2021, Citibank had announced to wrap up its consumer business in 13 countries including India. Behind which the company had said to focus its focus on the wealth management business.
When did you start business in India? Citibank opened the first operating office in India in Kolkata in 1902 and started consumer business in 1985. At present, the total number of customers with Citibank in India is around 29 lakhs.
This effect will be on the customer – Ashu Khullar, CEO, Citibank said that the priority of the bank is to ensure that its employees do not face any problem, so that positive results have been seen from Axis Bank. Along with this, he said that after the finalization of the deal, all the customers will get service from Axis Bank.