BusinessCCI approves Citibank and Axis Bank deal worth 12325 crores

CCI approves Citibank and Axis Bank deal worth 12325 crores

Axis Bank, at the time of announcing the deal in March, had said that its customer base would grow by 31 per cent after the acquisition of Citibank's consumer business. New 25 lakh cards to be added to Axis Bank's cards business

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Axis Bank’s plan to acquire Citibank’s consumer business in India has been approved by the CCI (Competition Commission of India). The deal will be for Rs 12,325 crore. The CCI approved the deal on Tuesday. Axis Bank is a private bank. It is one of the biggest banks in India. Citibank is one of the oldest banks in America.

Citibank’s consumer business in India includes loans, credit cards, wealth management and retail banking operations. After this deal, the rich customers of Citibank will become the customers of Axis Bank. Many of Citibank’s services have been fee-based. They have also been profitable.

CCI has given information about approving this deal through Twitter. This deal was agreed between Axis Bank and Citibank in March this year. After this deal, 3 million customers of Citibank India will become Axis Bank customers. Also, Axis Bank will get an opportunity to expand in new growth areas.

Citibank credit card customers will become Axis customers. This will make Axis Bank among the top three banks in the credit card business. Axis’ loan book is also expected to see decent growth from Citibank customers.

Axis Bank, at the time of announcing the deal in March, had said that its customer base would grow by 31 per cent after the acquisition of Citibank’s consumer business. New 2.5 million cards will be added to Axis Bank’s cards business.

Axis Bank CEO Amitabh Choudhary said on Monday (July 25) that the process of acquiring Citibank’s consumer business would be completed by March.

He had also said that Axis Bank does not openly want to engage with Citi until the deal is approved by the CCI. However, Axis Bank has started integrating Citibank’s employees, technology and business operations.

On Tuesday (July 26), there was selling pressure on the shares of Axis Bank. The bank’s stock closed at Rs 706.40, down 2.88 per cent.

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