Citibank announced earlier this month that it had completed the sale of its India consumer business to Axis Bank Limited (Axis), the third largest private sector bank in India which offers an entire spectrum of financial services for personal and corporate banking.
According to the bank’s press release, Citibank’s institutional client businesses in India are excluded from the sale as Citibank remains focused on serving institutional clients in India and globally.
The transaction,[1] which Citibank and Axis first announced in March last year, is expected to result in a regulatory capital benefit of US$1.4 billion for the leading global bank, which now serves over 200 million customer accounts and does business in more than 160 countries and jurisdictions.
The press release also stated that the sale forms part of a Strategy Refresh for Citibank, which includes the transfer of credit cards, retail banking, wealth management, and consumer loans to Axis Bank, plus about 3,200 Citibank employees.
This means that there will be no immediate impact on the services to the customers of Citibank’s consumer businesses in the territory.
Seven total divestitures completed, including in PH
As part of its strategic refresh, Citibank has signed sales agreements in nine new markets since publicizing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East, and Mexico. Its plan is to retain just the business division in Singapore, Hong Kong, London, and the UAE.
In the same press release, the global bank announced that it has already completed divestitures in seven markets, including Australia, Bahrain, India, Malaysia, Thailand, Vietnam, and the Philippines.
Citibank has earlier completed the sale of its consumer banking franchise in the Philippines to UnionBank, a deal that was first announced in December 2021.
Previously, the firm has also announced wind-downs of Citibank’s consumer business in China and Korea, and the wind-down of Citibank’s overall presence in Russia is in progress.
Peter Babej, CEO of Citibank Asia Pacific, said, “India remains a critical institutional market for Citi. In line with our broader strategic repositioning, we will continue to support our institutional clients in this core market and across APAC, delivering the full power of our global network to enable their growth.”
For his part, Titi Cole, CEO of Legacy Franchises of Citibank, said, “Completing this landmark sale in India is a key milestone for Citibank as we execute on our firm’s strategy refresh. We sincerely thank our former colleagues and clients for their contributions and loyalty and wish them continued success.”
Citibank is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management, and a valued personal bank in its home market of the United States. It provides corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.
For more information about Citibank, visit www.citigroup.com.
[1] https://www.citigroup.com/global/news/press-release/2022/citi-announces-agreement-to-sell-its-consumer-businesses-in-india-to-axis-bank-limited.