axis bank buys citibank | citibank is now axis bank | axis bank and citibank deal | what will happen to citibank customers | what will happen to citibank employees
On Wednesday Axis Bank announced to acquire Citibank’s consumer business in India for 12,131 crore and it will be all cash deal. Axis will pay Citibank an additional ₹1,500 crore over the next two years in order to help the transition process.
Now what will happen to the existing customers of Citibank after Axis Bank buys Citibank, who have either account or credit cards of Citibank? Do they need to take out all their money? Will their credit cards stop working?
In this article we will cover all these above questions with all the information we have. So, keep reading till the end.
Contents
What is included and excluded in the deal ?
The deal includes consumer banking businesses of Citibank India includes credit cards, retail banking, wealth management and consumer loans. The transaction also includes the sale of the consumer business Citicorp Finance (India) Limited, which includes commercial vehicle and construction equipment loans, as well as the personal loans.
However, Citi’s institutional client businesses in India, is not included in the deal.
What will happen to the Citibank employees after Axis bank buys Citibank?
After the deal, when Axis bank will completely acquire Citibank, 3,600 Citi employees would be absorbed by Axis Bank at pay packages equivalent to their existing package or even better. So, the employees need not worry, they will not loose their jobs or get salary reduced. Only their employer will get changed from Citibank to Axis Bank.
Profit of Axis Bank from the deal
After acquiring Citibank, Axis Bank will have about 28.5 million savings accounts and 230,000 premium customers, excluding credit cards. So, a large boost to the customer base which will make Axis Bank compete better with its competitors like HDFC or ICICI Bank.
Axis Banks credit card customer base will boost up by around 31% with an additional 2.5 million cards, after completion of the deal.
What will happen to the Citibank customers after Axis bank buys Citibank?
All the Citibank customers and their accounts and credit cards are safe. They will all be migrated to Axis Bank and become Axis Bank customers.
They will get access to all the technology and features of Axis Bank. But do check out for the account number and IFSC code updates, which will surely be notified in future, to avoid transaction failure. We will keep this post updated when we find such information.
All the customers holding Citibank credit cards, will be able to use the same credit cards. Their cards will be migrated to Axis Bank and can access and manage their cards and its transactions through Axis Bank and its apps or netbanking. The customers can also now be able to apply for other Axis Bank credit cards, on behalf of their existing Citibank cards.
Remember, the deals and charges of those cards can be changed later. We will again keep this post updated if any such information arrives. So, stay tuned with us.
Why is Citi selling the India consumer businesses?
This move is in line with our ongoing global strategy refresh that determined Citi would exit its consumer businesses in 13 markets in Asia and EMEA, including India.
This strategy refresh presents an opportunity to invest further and grow Citi’s Institutional Clients Group franchise in India which provides clients access to market-leading corporate and investment banking, capital markets and advisory, treasury and trade, and markets and securities
services solutions.
When will the deal be completed?
The transaction is expected to close in the first half of calendar year 2023 subject to requisite regulatory approvals.
Do let us know in the comment section below what do you feel about the deal and also you may ask any questions you have about this, we will try to respond. Read more details on the deal here.
Read all our other Financial News and Updates
FAQ
What businesses of Citibank are being sold to Axis Bank?
The transaction includes the sale of the consumer banking businesses of Citibank India, which includes credit cards, retail banking, wealth management, and consumer loans, as well as the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited. It excludes Citi’s institutional client businesses in India.
When will the sale of Citibank to Axis Bank be completed?
The transaction is expected to close in the first half of calendar year 2023.
What will happen to Citi reward points, turbo points & miles after Axis Bank buys Citibank?
All your existing Citi rewards points, turbo points and miles remain valid on your credit card. You will continue earning rewards points for all eligible spends on your credit card and all
redemption options continue as is. There is no change in the usage or current conversion or
redemption rates for now. The transaction is expected to close in the first half of calendar year 2023, after that you will be notified with the changes if any.
What will happen to my Citibank credit cards, personal loan, EMIs and add-on credit cards after Axis Bank buys Citi India?
There will be no immediate change to any product you hold with us, be it credit cards, loans,
deposits, investments, or any others. The products that you hold with Citibank remain active for usage and the benefits you enjoyed will remain unchanged for now. You will be duly informed of all relevant changes to your services and products, with adequate advance notice buy the banks.
An IT guy who keeps interest in blogging. Started blogging since 2017. He is the owner of the blog wheretosave.in and knowledgebear.com. A family man who loves Travelling, Gadgets and FOOD.
