Citibank, Axis Bank merger nearing; former stops new credit card, account applications

Lending main Axis Bank’s acquisition of Citibank’s shopper companies in India could have come as a shock to many. But the transfer is geared toward positioning Axis Bank at a powerful place to compete in opposition to the giants like ICICI Bank and HDFC Bank. The deal is predicted to shut within the first half of this yr, which incorporates sale of credit playing cards, retail banking, wealth administration, and shopper loans to Axis Bank because the American financial institution plans to exit retail operations from 13 markets. Axis Bank agreed to purchase Citibank’s shopper enterprise in India for over Rs 12,000 in money.

No date has been set to shut the merger, nevertheless it would possibly occur ahead of later. Citibank has halted sourcing of credit card applications for new prospects and all companions have been requested to cease sourcing credit playing cards. Additionally, the financial institution has additionally stopped opening new accounts. This may solely imply that the merger is nearing.

Axis Bank, Citibank merger

Post the acquisition, Axis Bank may have 28.5 million financial savings accounts, over 2.3 lakh ‘Burgundy’ prospects and 10.6 million playing cards. The acquired portfolio would enhance Axis Bank’s credit card buyer base by 31 per cent with a further 2.5 million playing cards.

The official assertion stated {that a} well-outlined ‘Integration Plan’ and a centered senior execution staff “will guarantee clean transition and seamless integration on all fronts, in collaboration with Citibank”.

“The staff comprising specialists with experience in operationalising large-scale integration packages will give attention to ‘Customer Service, Personnel, Systems & Technology’, and different synergies.”

Axis Bank is presently the third largest personal sector financial institution in India.