Why Citi Bank Exit From India? | Impact of Axis bank’s takeover on Citibank’s customers | Can we Still Use Our Citi Bank Cards?

One of India’s leading private sector lenders, axis bank, is taking over CitiBank India’s consumer banking business for Rs.12,325 crore. The sell out includes citibank wealth management services, retail banking, citi bank home loan services, credit cards, etc. However the deal excludes citi institutional banking services. A prediction says this acquisition will inflate axis bank savings account count to 2.85 million and the axis bank credit cards to 10.6 million, taking it closer to its competitor ICICI bank.

Why citibank is selling its consumer business in India?

After hearing about the takeover, one of the general questions that pop into our mind is why citi is leaving india? or why did they sell their business? Citi Bank says that they are going to focus mainly on their institutional business and global strategies. But the main reason behind the sellout is financial stress.

Citi group have started their operation in India in 1902, since then they have served 1.2 million bank accounts, 2.2 million citi bank credit cards, and 2.9 million retail customers. But in the last few years, their profits are under huge stress. In FY2019 their net profit was Rs.4,918 Cr. which decreases to Rs.1727 Cr. in FY2020. 

How will this affect Citi Bank customers?

Now if you are a citi bank customer then you might be thinking about whether I should continue with my citi bank saving account or not? Citibank has ensured that the citibank existing customers will experience no inconsistency in banking services, and you will enjoy all the benefits like, citi bank rewards, and other citi bank offers that you were entitled to.

You will also be able to use your Citi mobile banking, citi bank emi calculator, citi bank net banking account, and other Citi banking services just like before.

In fact, citibank india has given Axis bank control of its citi bank online banking services so that it can maintain a seamless banking experience for its customers. 

Once the takeover process is complete (which can take up to 9 to 12 months), you will be asked to fill up a consent form to become an axis bank customer, and if you wish, your existing citibank account along with your deposits will be transferred to Axis bank. 

Is the takeover going to be beneficial for us?

Citi Bank customers will also benefit from the acquisition. The existing citibank account holders will get access to a wide range of products, a wider geographic reach, exclusive deals, and other axis bank products.

But we are not alone who are going to benefit from this deal. Axis Bank currently holds the 4th position in the list of leading indian credit card companies, with more than 8.6 million active axis bank credit card, and the deal is going to add 2.5 million citi bank credit card users to it, taking them up to the 3rd position(in ideal situation). And this is only the credit cards, there are several active bank accounts, and a number of citi bank branch offices and ATMs that Axis Bank is going to get access to. So it is a win-win for everyone.

Is this takeover going to change the Indian credit card market?

Currently, HDFC bank is the top indian credit cards company with 15 million active credit cards, followed by SBI with 12 million active cards, ICICI with 10.6 million active cards, and Axis with 8.6 million cards. Now the citibank takeover is likely to bring 2.5 million unique credit card users on board making them the 3rd largest credit card company in India.

And not only the credit card business, As a result of combining Axis Bank’s large loan book with high-net-worth citibank customer base, but production and branch footprint synergies will also be created. 

Now the only people concerned about this sell out of citibank are the citibank customers. Although Axis Bank has stated that existing customers will be given the same smooth citi bank online and offline banking experience as before, only time will tell what the true outcome will be. 

But if you are super worried about the situation and are thinking about how to close citi bank credit card account permanently? Then make sure to visit our faq page. Also if you have queries like how to close axis bank account or how to check axis bank balance then feel free to take a look at our Axis faq page.

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