Axis Bank has bought out Citibank's retail lending business in India.
Axis will pay the princely sum of Rs 12,325 crores for it, and also included in the deal is the retail lending part of an NBFC run by Citi called Citicorp Finance (India) Ltd.
In April last year, US-based Citigroup had announced they'll be exiting 13 markets, and India was one among them. They employed 3,600 people here, and all will now be part of Axis Bank - so luckily no job losses.
Citi had a consumer loan portfolio of Rs 27,400 crores, including credit cards, mortgages, personal loans and some others.
They had 25 lakh credit cards, deposits of Rs 50k crores and wealth management assets worth Rs 1.1 lakh crores as well, managed across 7 offices and 21 branches.
Citi's credit cards were the most in-demand thing when the sale was announced because they're primarily marketed to affluent consumers who bring in more revenue.
Axis Bank is the number 4 player in the credit card space in India with ~86 lakh cards issued. This acquisition and the 25 lakh cards that come with it will help Axis reach a step closer to ICICI Bank in the #3 spot with 1.27 crore credit cards. And then these affluent customers will also help with Axis' wealth management business.
The deal should close in 9-12 months and is expected to increase Axis Bank's earnings per share going ahead (EPS accretive).