Deal between Axis Bank and Citi should be finalised by Q4FY23, according to MD Amitabh Chaudhry
Citibank's India consumer division was purchased by Axis Bank in March for $1.6 billion in an all-cash transaction.
admin
Amitabh Chaudhry, managing director and chief executive officer of Axis Bank, announced on July 25 that the agreement to purchase Citibank India's consumer division will be finalised by the fourth quarter of this fiscal year.
Amitabh Chaudhry stated during a conference call following the private lender's April-June quarterly results that "on the Citibank consumer business integration, we are awaiting CCI (Competition Commission of India) approval, and we expect to close the transaction by the fourth quarter of fiscal 2023."
According to Chaudhry, the bank was attempting to integrate staff, technology, and business processes.
Axis Bank purchased Citibank's consumer business in India in March for $1.6 billion in an all-cash transaction. The deal involved selling Citibank India's consumer banking operations, including its credit card, retail banking, wealth management, and consumer lending businesses.
According to Axis Bank, the agreement would add 2.5 million new credit cards, increasing its credit card client base by almost 31 percent.
According to Chaudhry, Axis Bank cannot interact "extensively" with Citi until it has the CCI approval, which is anticipated to happen in six to eight weeks.
The day of the merger would be when Axis Bank took over Citibank's assets and deposits. According to Chaudhry, Axis Bank does have the legal right to use the name "Citi" for a specific amount of time. The bank intends to eventually offer the same experience to Citi customers in the "same shape and form as before," he continued.
