Axis Bank acquires Citibank’s India consumer business
Axis Bank, headquartered in Mumbai, has completed the acquisition of Citigroup-owned foreign bank Citibank’s India consumer business for Rs 12,325 crore, prior to an evaluation of Citibank India’s assets, assets under management, and liabilities as of January 31, 2023. The transaction is estimated to be worth around Rs 11,603 crore after due diligence. According to a recent exchange filing by Axis Bank, Axis Bank has acquired Citibank’s India consumer business from Citibank N.A. or CBNA, as well as the non-banking financial company (NBFC) consumer business from Citicorp Finance (India) Limited or CFIL.
The filing stated, “We now wish to inform you that the completion of the acquisition of Citibank’s India consumer business from CBNA and the NBFC consumer business from CFIL as going concerns, without values being assigned to individual assets and liabilities for either business, shall occur on March 1, 2023.”
Axis Bank also stated that the purchase price for Citibank India’s consumer business is based on the closing position of the latter’s assets, assets under management (AUM), and liabilities on January 31, 2023. According to the filing, the acquisition of Citibank India’s consumer business is in accordance with the requirements and terms of the agreed contractual documentation and settlement of consideration.
The filing stated, “Given the form of the transaction, the foregoing cash consideration, along with any true up or true down, shall be accounted for as goodwill and other intangibles, which will be completely amortized for accounting purposes in 2023.”
So how will this acquisition impact the user experience? Customers of Citibank India’s consumer banking division can continue utilizing their current Citi products and/or services, branches, ATMs, internet banking, and Citi Mobile App as usual, according to the website of the bank. In India, Axis Bank offers consumer banking products under the Citi name while Citi India offers other services.
The trademarks “Citi”, “Citibank,” “Citigroup,” the Arc design, and other similar trademarks and derivatives thereof are used temporarily by Axis Bank under licence from Citigroup Inc. and affiliated group businesses, it was also noted in the document.