New Delhi. Axis Bank may soon buy Citi Bank Consumer Business in India. There is a possibility of finalizing the deal in Axis Bank and Citi Bank soon. US-based Citibank had in April laid out its plan to separate from its consumer bank business in India as part of an international strategy. Along with Axis Bank, Kotak Mahindra Bank also made a bid to buy Citibank.
Sources with knowledge of this deal say that Axis Bank can buy Citibank for about $ 2.5 billion. Citibank is the first foreign bank to start business in India. Citibank provides services like credit card, retail banking, loan and money management in the country. The bank has 35 branches in the country and about 4,000 people are involved in the consumer bank business. According to sources, the bank’s business could be valued at around $2 billion (Rs 13,000 crore).
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What will be the effect on Citibank customers
If Axis Bank buys Citibank, then there is no risk to the customers’ money deposited in Citibank. Before making a deal, both the banks will have to tell the complete plan of this deal to the Reserve Bank. In this, both the banks will have to explain their plan to RBI on the interests related to the customers (City Bank Customer). Banks will be able to do this process only after RBI approval. Till this deal does not come to fruition, the customers of Citibank can enjoy all the facilities of the bank without any hesitation as before. Customers money is completely safe.
What will be the benefit to Axis Bank?
If Axis Bank wins this deal, then it will strengthen the hold of India’s third largest private bank in high-end credit cards and other sectors. An expert in ICICI Direct told Reuters news agency a few days ago that the acquisition of Citibank’s retail business will increase the reach of Axis Bank, while also opening doors to many other opportunities for it.
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First bank to introduce credit card in India
Citibank has been operating in India for many decades. Citibank itself launched the first credit card in India in 1987. As per the data available till November, Citibank had 2.57 million credit card portfolio. Axis Bank has 7.9 million credit cards. Although Axis Bank has more credit cards, Citibank is ahead of Axis Bank in terms of spend per card.
Tags: Axis bank, Banking Sector
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