Thought Leadership:Axis Bank MD and CEO Amitabh Chaudhry talks about Citibank’s India business acquisition
The management believes it has got strong balance sheet to fund the deal.
One of India’s leading private banks, Axis Bank has been trending on Dalal Street for its deal with Citibank India. The private player is set to buy Citibank’s consumer business in India for a sum of about Rs 12,325 crore. The acquisition is expected to add about 30 lakh new customers of Citibank India, to the books of Axis bank. Its cards balance sheet is expected to grow by 57% with an addition of 25 lakh Citibank cards, which will position it in top three cards business in India. The acquisition aims to further boost the market share growth of the company. Let us hear what Axis Bank MD and CEO Amitabh Chaudhry said in a press conference.
He feels that the bank has grown organically in the past which has paid off well. But with this acquisition, it will have the strategic thrust to chase down the gap among its peers. “We have a strong balance sheet, comfortable capital levels to execute this deal and the right team to make it a success”, he said.
This big deal is subject to various customary & regulatory approvals and it might take 9-12 months to settle the deal. Also, retaining Citibank customers is going to be challenging. But Axis Bank is confident about its product offerings & digital capabilities such that it aims to minimize customer attrition. He believes that Axis Bank has been better than Citibank India when it comes to offering some services and products such as a better mobile app, he remarked. The bank has been surveying the customer base of Citibank and is flexible enough to make adjustments in price mechanisms. He also noted that Axis Bank is going to retain all the employees of Citibank.
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