Exactly 1 year after announcing the merger, Axis Bank finally acquired the Citibank India’s consumer business in India as well as its non-banking finance arm – Citicorp Finance (India) Limited, on the 1st of March, 2023.
Quoting Axis Bank’s Press Release –
Mumbai, March 01, 2023 “Axis Bank, one of India’s largest private sector banks, has completed the acquisition of Citibank’s consumer business in an accelerated time frame of within 7 months post receipt of CCI approval, displaying a strong testament of its execution strength. The deal has been closed with Axis Bank paying a total purchase consideration (after customary & contractual adjustments) of INR 11,603 Cr* to Citibank India.”
Reports were there that the bank was facing issues in gaining customer’s consent but with a few hiccups, all such problems stand ironed out as the Axis Bank further solidifies its position among the largest private commercial banks in India.
Now, it’s only normal to have qualms and worries about your existing Citibank credit card, debit card and home loans, etc. What will happen to these? Will your Citibank ATM card stop working now? Let’s clear out these confusions in the next section.
About Axis Bank
Axis Bank is a private sector bank in India, offering a wide range of financial products and services to its customers. The bank has a strong presence in the retail banking segment and provides services such as savings accounts, loans, and credit cards. It is known for its customer-centric approach and innovative digital solutions.
About CitiBank India
CitiBank India was a subsidiary of Citigroup, one of the largest financial services companies in the world. It offered a range of banking products and services, including personal and business banking, wealth management, and investment banking. The bank had a strong presence in major Indian cities and provided innovative digital solutions to its customers. Post the merger with Axis Bank, all the existing customers of CitiBank India are now being served by Axis Bank.
Key Points about CitiBank India and Axis BAnk Merger
The following are the points to consider in understanding the ‘What and How’ of the Axis Bank – CitiBank India merger:
- Axis Bank acquired Citibank India’s consumer business and non-banking finance arm on 1st March 2023
- The acquisition was completed within 7 months after receiving CCI* approval
- Axis Bank paid Rs 11,603 Crores to Citibank India as the total purchase consideration.
- The acquisition displays Axis Bank’s execution strength and solidifies its position among the largest private commercial banks in India
- All CitiBank India branches will now be rebranded as Axis Bank branches and the existing customers may continue using the same for any banking-relation services
- Citi mobile app as well as the online banking channels will continue to work the same and will be gradually rebranded as Axis Bank app and channels
- There will be no change in account number, IFSC, MICR codes
- All the existing loan agreements, credit cards and accounts shall continue working in the same manner, with the same standing instructions – no change in fees or rate of interest for the existing customers
- “Consumer banking customers can continue to use all existing Citi products and/or services, branches, ATMs, internet banking and Citi Mobile® App as usual.” – CitiGroup
- Along with customers, CitiBank India officials have also been reappointed as the Axis Bank staff, leading to no negative impact on their employment status
- As per the Axis Bank circular on the merger, “Citibank’s customers will specifically benefit from Axis Bank’s wider geographical reach and comprehensive service offerings, along with One Axis capabilities that extend across all its subsidiaries ensuring ‘same or better’ offer to all Citi customers.” (Source)
*CCI – Competition Commission of India (An establishment under the Ministry of Company Affairs, Govt. of India)
FAQs on Axis Bank – CitiBank Merger
All the CitiBank consumer banking customers will now be treated as Axis Bank customers, i.e. these customers will be treated by the Axis Bank as their own.
Consumer business includes – credit cards, debit cards, retail banking, home loan, personal loan, car loan and fixed deposit etc.
Yes, your account details and related features, such as your account number, ATM-debit card, cheque and charges etc. will remain unchanged.
It’s a good thing that you will not be getting the same interest. In fact, you will be getting higher interest rate on your savings account, wherever applicable, now that the CitiBank India is merged with Axis Bank.
You can use any Axis Bank ATM to withdraw cash with your existing CitiBank debit card.
No. All the existing CitiBank India debit cards and credit cards will work in the same manner. The only difference is now you’ll be using the Axis Bank branches, Axis Bank ATMs and Axis Bank netbanking for all your card-related services. Your existing debit card or credit card details, benefits and features will remain the same.
All your exsiting reward points in your CitiBank India credit card will remain the same and will continue to accrue. You will be able to redeem these points on the Axis Bank website and mobile app, likewise.
You can use Axis Bank ATM, branches, Axis Bank mobile banking and Axis Bank netbanking to make payment towards your existing CitiBank India credit card(s).
After the Axis Bank – CitiBank India merger, the new SWFIT code for foreign currency inward and outward transactions is AXISINBB. Earlier, this was CITIINBX.
Since your loan is already disbursed, it will be transferred to Axis Bank now. All the terms and conditions that you agreed to with CitiBank India will be the same. There will be no change in the interest rate that you agreed to pay on your home loan with CitiBank India, before the merger with Axis Bank.
No. There is no requirement for a new agreement with Axis Bank post the merger. If any such requirement arises, you’ll be communicated with the same well in time.
No. There will be no change in any approved EMIs you’ve had with CitiBank India. You may continue paying your CitiBank India credit card bill in EMIs using the Axis Bank portals.
No. If your KYC was already done and completed before the Axis Bank and CitiBank India merger, there is no need to do it again, post-merger.