The deal was announced in March this year. In-spite of this City After losing market share on credit cards in India, Axis Bank says the business it was acquiring, the staff and customer shortages were within manageable limits.
“We are now working towards a legal date one, when the balance sheet, people and customers come to us and we will make the payment to Citibank,” said Axis Bank Deputy Managing Director. Rajeev Anand Told ET. “We are expecting a closure somewhere in the last quarter of FY23, which is from January to March (2023) next year.”
In March this year, Axis Bank said it has agreed to acquire Citi’s India retail business for a total value of around ₹27,400 crore. The lender is also receiving Citi’s deposits of ₹50,200 crore. The deal covers both credit card, money and retail banking operations. Citibank India And Citicorp Finance,
While Axis Bank will pay ₹12,300 crore directly as the cost of the business, the capital investment of ₹3,500 crore and amalgamation cost of ₹1,500 crore will add up to ₹17,300 crore. Axis Bank will inherit over 1,600 corporate salary account relationships, as well as access to Citi’s seven offices, 21 branches and 499 ATMs in India.
While analysts tracking the sector have raised concerns over Citi’s declining market share, Axis Bank said its performance was in line with the assumptions made at the time of signing the deal. “When we looked at this transaction, we anticipated some degree of attrition in terms of both people as well as customers. Whatever we know and hear publicly, the number of attrition we have on both is within the comfort zone,” Anand said.