Axis Bank has taken over the Citibank's retail division for £1.16 instead of the earlier stated price of £1.23 billion. When the two banks agreed to a deal last year, Citi's ability to keep its business was a factor in the deal's pricing.
The acquisition will increase Axis Bank’s customer base by 24,00,000 as against the 30,00,000 expected earlier. The merger has increased Axis Bank’s credit card base by 18,00,000, growing its market share in credit cards from 11. 4% to 16. 2%. “Axis Bank already has a rich network of Citi alumni across the hierarchy, reflecting the cultural alignment between the two organisations,” said Axis Bank MD &CEO Amitabh Chaudhry.
Signages on 13 Citibank branches will be replaced with that of Axis Bank. Another 21 branches will house an Axis branch and also retain a Citi-branded branch. Axis Bank will also take over six offices of Citi. For Citibank cardholders, not much will change for the present as the Citi branding will continue to be used by Axis Bank under licence for some time. The offers and the terms and conditions will also continue.