Axis Bank Acquires Citi’s India Consumer Business: What This Means for You

In a move that shook up the Indian banking sector, Axis Bank announced that it had acquired Citi’s India consumer business on Monday. This is a big win for Axis Bank, which wil

l now access Citibank’s massive customer base in India.

The acquisition is also expected to benefit customers of both banks, as they will now have access to a wider range of products and services.

Let’s take a closer look at what this acquisition means for you!

What is Axis Bank, and what does it do?

Axis Bank is a private sector bank in India. It offers a wide range of products and services, including savings and current accounts, loans, credit cards, and investment products. The bank has over 50 million customers and operates more than 1,800 branches across India.

What is Citi, and what does it do?

Citi is a global financial services company. It offers a wide range of products and services, including banking, investment banking, wealth management, and credit cards. The company has over 200 million customers and operates in more than 160 countries.

What is Citi’s India Consumer Business, and why was it sold to Axis Bank?

Citi’s India Consumer Business is a retail banking operation that offers banking products and services to individual consumers in India. The business was sold to Axis Bank because Citi wants to focus on its core operations in other countries.

Citi bank started its banking operation in 1902 in Mumbai and the credit cards retailing business in 1985. As part of its plans to exit retail operations in 13 markets, on 30th March 2022, it announced the sale of its Indian consumer banking businesses, including credit cards, retail banking, wealth management, and consumer loans, to private lenders Axis Bank for Rs 12,325 crores.

The acquisition is expected to be complete in the second quarter of 2022.

What does this mean for you?

There are two parts of this question that we will address: Before completion of the acquisition and after completion of the acquisition.

Before completion of acquisition: 

Citi will continue to operate its credit cards, loans, deposits, investments, and other products as it does today. There will be no immediate change to any of these products. The call centers, ATMs, relationship teams, branches, Citibank online portal, and the Citi mobile application will all continue to operate as they do today.

Your loan on a credit card, EMI, will continue as per the contract without any change. The interest rates, tenure, and other terms and conditions will remain unchanged.

Also, Citi reward points, turbo points & miles will continue to be earned, redeemed, and used per the existing program.

After completion of acquisition: 

Axis Bank will take over the customer base, products, and operations of Citi’s India Consumer Business. This means that you will now be a customer of Axis Bank.

Axis Bank will offer a wider range of products and services, including savings and current accounts, loans, credit cards, and investment products. The bank will also offer its products through Citi’s existing distribution channels, including call centers, ATMs, relationship teams, branches, Citibank online portal, and the Citi mobile application.

Your loan on a credit card, EMI may change to Axis Bank product. The interest rates, tenure, and other terms and conditions will be decided by Axis Bank post-acquisition.

However, communication about the same will be sent to you well in advance.

What are the benefits of this acquisition for Axis Bank customers and Citi customers in India, respectively?

Axis Bank customers in India will benefit from the acquisition as they will now have access to a wider range of products and services. These include savings and current accounts, loans, credit cards, and investment products. Additionally, Axis Bank will be able to offer its products through Citi’s existing distribution channels.

However, Citi customers may miss Citi bank’s premium customer service.

How will this acquisition impact the Indian banking landscape as a whole?”

The acquisition of Citi’s Indian consumer banking business by Axis Bank is expected to impact the Indian banking landscape as a whole positively. It will give Axis Bank a larger customer base and enable it to offer a wider range of products and services to its customers. Additionally, the acquisition will help Axis Bank compete more effectively with the other private sector banks in India.

My thoughts

I think there will be many changes once the acquisition is complete, but it’s still too early to say all those changes. All we can do for now is wait and watch.

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