Axis Bank To Complete Acquisition Of Citibank Units By March 1
Both parties have made progress on integration and have obtained other requisite customer consent and approvals, Axis Bank said.
Axis Bank Ltd. will complete the acquisition of two units of Citibank by March 1, 2023, according to its exchange filing.
On March 30, 2022, Axis Bank had signed an agreement to purchase the India retail business from Citibank NA for Rs 12,325 crore, as well as the consumer business of Citicorp Finance (India) Ltd.—a non-bank financial company under the U.S.-based bank.
Axis Bank had given a timeline of 9-12 months for closing the deal. Both businesses are to be acquired as going concerns without values being assigned to individual assets and liabilities.
"... both parties have made progress on integration and have obtained other requisite customer consents and approvals, as applicable. Based on the progress made till date, we estimate a reasonable possibility of completion of the acquisition by March 1, 2023, which is within the timeline of 12 months indicated earlier by us," Axis Bank said, in its filing.
The completion of the deal is subject to satisfactory completion of the customary and contractual conditions in accordance with the provisions of Citibank and Citibank Finance (India), the Indian lender said.
As part of the deal, Axis Bank will receive interest earning advances portfolio of Rs 27,400 crore, including credit cards, mortgage, personal loans, asset-backed finance and small business banking.
The deal will see credit card portfolio of 25 lakh users, deposits to the tune of Rs 50,200 crore and wealth management assets worth Rs 1.1 lakh crore change hands.
Axis Bank will also come into possession of seven offices, 21 branches, and 499 ATMs currently owned and operated by Citi.