Axis Bank completes deal to buy Citi’s India consumer business

MUMBAI: Indian private lender Axis Bank Ltd said on Wednesday it completed a deal to buy Citigroup Inc’s local consumer and non-banking finance businesses, marking the US lender’s exit from its credit card and retail businesses in the country.

The deal value of 116.03 billion rupees ($1.41 billion) is based on the closing position of assets, assets under management and liabilities of Citi’s portfolio as of Jan. 31, Axis Bank said.

The consideration was subject to changes in the business’ position since then, said Axis Bank.

The deal, when announced in March 2022, was worth 123.25 billion rupees and is Axis Bank’s biggest-ever acquisition.

“Citi India consumer banking customers are now served by Axis Bank,” Citibank said on its website.

Citi was among the first international lenders to introduce credit cards in India in 1987, but it lost ground to larger players over the years.

In 2021, Citi Chief Executive Jane Fraser announced plans to exit its consumer businesses in 13 Asian and EMEA markets as part of a turnaround strategy.

The deal is expected to increase Axis Bank’s deposit base and loan book by 7% and 4%, respectively, and expand its credit card customer base by 31%.

Shares of Axis Bank rose 2.2% on Wednesday in their biggest intraday advance in four weeks.

They have risen about 15% since the deal was announced last year, compared with a 13% rise in the Nifty Private Bank index in the same period.