Axis Bank and Citibank have announced that their respective boards have approved the acquisition of Citibank’s consumer business in India by Axis Bank.
Axis Bank will pay consideration up to ₹12,325 crores to Citibank for the acquisition. So what will happen to Citi’s credit and debit card customers. Here’s what we know so far. Key details
After the acquisition, Axis Bank will have 28.5 million savings accounts, 2.3 lakh-plus Burgundy customers and 10.6 million cards.
The transaction will also include approximately 3,600 Citi employees supporting consumer businesses in India, who will transfer to Axis upon completion of the proposed transaction.
Axis Bank will take over the lending, credit card, wealth management and retail banking businesses of Citibank.
Citibank consumers will continue to enjoy all the rewards, privileges and offers they were previously entitled to after the acquisition, according to a statement from Axis Bank MD Amitabh Chaudhry.
If customers accept Axis to run their business, their accounts, credit cards and other activities will change, otherwise the relationship will end and they can walk out with their deposits.
All Citibank customers will be required to provide consent to become Axis Bank customers once the deal receives regulatory approval. The transaction is expected to take 9 to 12 months.
Citibank customers will also benefit from Axis Bank’s increased scale, greater geographic reach, and breadth of products and offerings.
Axis Bank is set to access the prowess of CitiPhone Banking, to ensure continuity of service excellence for Citibank customers and improved services for Axis Bank customers
The Bank will have access to 7 offices, 21 branches and 499 ATMs in 18 cities.
Digital banking services and the Axis Mobile app offering 250 highly rated services will be an added advantage for customers having immediate access to view and transact in product categories such as deposits, investments, payments and protective solutions.
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