Axis Bank acquires Citibank business, here's what will happen to your credit cards and home loans
By Lokmat English Desk | Published: March 1, 2023 03:00 PM2023-03-01T15:00:55+5:302023-03-01T15:00:55+5:30
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Axis Bank said on Wednesday that it has completed its acquisition of Citibank's India consumer and non-banking finance businesses. The deal, announced in March 2022, has been closed for a cash consideration of $1.41 billion (Rs 11,630 crore) in one of the largest deals in the Indian financial services space.
From today (March 1), Citibank's home and personal loan, credit card and insurance businesses have now come under the control of Axis Bank.
The acquisition has taken almost a year, after being announced in March, 2022. Just days ago, Citibank took down its signboard from its landmark Kanak Building office on Kolkata's Chowringhee road - the place where the bank started its operations in India in 1902. In 2021, Citigroup announced its plans of exiting 13 international consumer banking markets, shifting its focus to wealth management and away from retail banking in places where it is small.
In a stock exchange filing last week, Axis Bank had informed that it had acquired the consent of Citibank's customers for taking over the business.
The acquisition will also transfer more than one million customers and an average salary of ₹ 70,000 per month to Axis Bank, which will strengthen its salary business.
Axis Bank said that Citibank's customers will be benefited from its augmented scale, larger geographical reach and width of products and offerings. Axis bank will gain access to seven offices, 21 branches and 499 ATMs across 18 cities in India.
When it comes to card transactions, Citibank is among the leading financial institutions in the country. According to an RBI report, transaction worth ₹ 3,000 crore is carried out by the 2.5 million Citibank credit card users. Though both the banks have said the customers will not face any issues, reports claims they will have to undergo a Know Your Customer (KYC) routine again. However, this process will be carried out in phases to minimise the inconvenience to customers.
Citi Bank account holders can continue using your Citi account for now without any changes in the account number, IFSC / MICR codes, debit card, cheque book, fees and charges. In case of any changes in future, Axis Bank will notify the customers. Account holders will be able to access any Axis Bank ATM after the transfer date. The number of free transactions currently available to you at Citibank ATMs will be extended to Axis Bank ATMs as well. Any charges currently applicable over and above free transactions at Citibank ATMs will be charged on transactions at Axis Bank ATMs too.
