Private sector lender Axis Bank on Thursday said the deal to acquire the India consumer business and NBFC business of Citibank is expected to be completed by March 1, 2023.
axis Bank will take over City BankIndia consumer business from Citibank NA (CBNA) and NBFC from Citicorp Finance (India) Ltd (CFIL), according to its regulatory filing.
In March last year, Axis Bank said it reached an agreement to buy Citibank’s consumer business in India 12,325 crore ($1.6 billion) in cash. Citibank’s consumer business includes loans, credit cards, wealth management and retail banking operations. The bank’s credit card portfolio consists of affluent customers and their average spending is higher than the industry.
The bank had given 12 months to complete the acquisition. In July last year, Axis Bank got approval from the Competition Commission of India (CCI) for this.
“Based on progress made to date, we anticipate completion of the acquisition to be reasonably likely by March 1, 2023, which is within our previously stated timeframe of 12 months, subject to customary and contractual terms.” subject to satisfactorily completion as per the provisions of CBNA BTA and CFIL BTA as detailed above,” Axis Bank said in its filing.
Credit card portfolio of 2.5 million users will be accumulated in this deal 50,200 crore and Wealth Management Asset Value 1.1 for Axis Bank.
Axis Bank will gain access to seven offices, 21 branches and 499 ATMs currently owned and operated by Citi.
Axis Bank’s card balance sheet to grow by 57% with additional 2.5 million Citibank cards, making it one of the top 3 card businesses in the country
Axis Bank reported a 62% rise in net profit for the fiscal third quarter. Profit climbed for the quarter ended December 31 5,853 crore to 3,614 crore a year ago.
Axis Bank shares closed with a gain of 1.44 per cent. 845.15 on BSE.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,