Acquisition of Citibank’s domestic consumer and retail business

As an Axis banker, who spent almost 28 years with the organisation, it’s a matter of great delight that Axis has completed its take over of the Citibank’s retail business in India. Notwithstanding, attrition of business and employees between the dates of announcement of the deal and the actual acquisition, which was expected, the acquisition has made substantial contribution to the Axis’s existing franchises of CASA, credit card, wealth management and SME.

A bit of an inorganic growth push was long overdue for Axis Bank. We all know how its immediate rivals widened their lead over Axis through inorganic growth. After the failed attempt to merge with Global Trust Bank and a few marginal acquisitions such as Enam and Freecharge, which added more to the Bank’s capability than to balance sheet, Axis Bank chose to tread the path of organic growth only. We, as old staff of the Bank used to pose this question to our CEOs- “ when are we going to make an acquisition that gives us immediate growth? “ – and at last this opportunity came Axis’s way when Citibank decided to hive off its retail consumer business in line with its global strategy for certain markets.

Being no longer part of the system, I don’t know what’s feeling inside the organisation, which I presume will be euphoric. Citibank was indeed a pioneer as far as credit card and wealth management businesses in India are concerned and this acquisition definitely boosts these franchises in Axis bank, where Axis already has significant presence.

Whenever two organisations merge or business of one gets acquired by another ( as is the case in Axis- Citi deal), some issues cannot be completely ruled out and may require ironing out. But given Axis’s inclusive culture, I have no doubt that incoming Citibank’s employees as well as customers will feel at home in Axisbank.

Welcome Citibank’s employees and customers to the world of Axis! May this bring the best out of both – the existing and incoming employees of Axis Bank!