Axis Bank to take over more than $1 billion consumer banking business from Citi Bank including some of the most important sectors like retail, management, and loans.
Axis Bank to take over consumer business
Two of the known banks of india has striked a deal that will allow the former to take over $1.6 billion consumer banking sectors from latter. Some of the sectors that are to be taken over include management, retail, credit cards and loans.
Both the private sectors has taken this deal in an all cash transaction. The deal was announced yesterday, 30th march 2022 to the audience.
As per the reports shared, ” the transaction comprises the sale of the consumer banking business, which includes credit cards, retail banking, wealth management and consumer loans.” In addition it willl also include, ” the sale of consumer business of Citi’s non banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financial business , which includes commercial vehicle and construction equipment loans as well as the personal loans portfolio”.
Some of the sectors are being excluded from the deal including the clients that were instituionalized as the the aim of the citis is to serve the clients nationally as well in the global platform. In addirion, the changes have also been made to the employees who will now work for Axis.
According to the CEO of Citi India, the deal that has been made with Axis will provide fruitful results in future and have a good outcome that will be beneficial for its employees. Further more, the CEO, Mr. Khullar also added that, “We continue to remian committed to contributing to India’s growth and development as we deepen our presence through our institutional businesses and our community initiatives. Citi will also continue to harness india’s rich talent poool in the areaas and allied functional areas through its network of Citi solution centers that are located in five cities in India and support our global business.”
This deal will further help to acquire an increase in the credit customer base by more than 30 percent of increase. This in turn will enable the company to boost the card balance. The deal has taken place after the withdrawal of 13 markets in Citi’s consumer franchise. On a global platform this move will benefit all in the long run.
In India, the Axis is one of the leading ones in the private sector who could afford to strike a deal close to $1.6 billion in cash.