Axis Bank, a private sector lender, announced on Thursday that the acquisition of Citibank's consumer and NBFC businesses in India will be finalised by tomorrow, March 1st, 2023.
According to a regulatory filing, Axis Bank would buy Citibank's India consumer business from Citibank N.A. (CBNA) and Citicorp Finance (India) Ltd (CFIL).
Axis Bank said in March of last year that it has agreed to pay Rs 12,325 crores (USD 1.6 billion) in cash to acquire Citibank's consumer division in India. Loans, credit cards, wealth management, and retail banking activities are all part of Citibank's consumer businesses. The bank's credit card portfolio is made up of wealthy consumers who spend more on average than the ordinary consumer.
The bank had specified a 12-month time frame for finishing this transaction. Axis Bank received permission from the Competition Commission of India (CCI) for the same in July of last year.
In its filing, Axis Bank stated that, "Based on the progress made to 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, subject to the satisfactory completion of the typical and contractual conditions in accordance with the provisions of the CBNA BTA and CFIL BTA, as referred above."
With the acquisition, Axis Bank would receive a credit card portfolio with 25 lakh customers, deposits totaling 50,200 crore, and wealth management assets valued at 1.1 billion.
Seven offices, 21 branches, and 499 ATMs now owned and run by Citi will be accessible to Axis Bank. With an extra 2.5 million Citibank cards, Axis Bank's Cards balance sheet will increase by 57%, placing it among the top 3 Cards businesses in the nation.
The net profit for the third quarter of the bank's fiscal year increased by 62%. Earnings for the quarter that ended on December 31 increased from Rs3,614 million to Rs.5,853 million.
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