Axis Bank shares gain on completion of acquisition deal with Citigroup

Shares of Axis Bank rose on March 1 as the lender announced the completion of the acquisition of Citigroup’s India consumer business from Citibank N.A. and NBFC consumer business from Citicorp Finance (India) Ltd.

The transaction was completed for a total cash consideration of Rs 11,603 crore based on the contracted computation of the closing position of assets, assets under management and liabilities as of January 31, 2023.  As a result, Axis Bank is now the owner of Citigroup’s India consumer business.

Also Read: Citi consumer business is now Axis Bank property: What changes for customers

At 10.47 am, shares of Axis Bank were trading at Rs 860.70 on the National Stock Exchange, up 1.97 percent from the previous close. The stock has also tested an intraday high of Rs 863.70.

The acquisition of US  bank Citigroup’s consumer banking businesses which include credit cards, retail banking, wealth management, and consumer loans by Axis Bank was announced in March last year. The deal was a part of Citigroup’s plans to exit retail operations across 13 markets, including India as part of its global business strategy.

The deal was then approved by the Competition Commission of India in July last year.

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This acquisition has provided Axis Bank with access to 30 lakh unique customers of Citibank India, along with seven offices, 21 branches, and 499 automatic teller machines across 18 cities, allowing the lender to expand its reach.