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Acquisition of Citibank India might get pushed to May: Axis Bank’s MD

After the completion of merger, Axis Bank will require 18 months for the complete takeover of customers and shift of technology from Citibank

Acquisition of Citibank India might get pushed to May: Axis Bank’s MD
In March, Axis Bank had announced acquisition of retail business of Citibank India for Rs 12,325 crore. (Reuters file photo)

Axis Bank’s acquisition of Citibank India may get pushed to May in case the lender faces some technology-related challenges, Amitabh Choudhary, MD & CEO of Axis Bank, said. However, the bank is still aiming to complete the acquisition by March 31.

“There are a lot of smaller technology changes that are to be made and lot of these things are getting delivered in January-February. We have to test it. Right now there are no delays. If there are delays, we might push it to May. Right now we are aiming for March,” Choudhary said.

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After the completion of merger, Axis Bank will require 18 months for the complete takeover of customers and shift of technology from Citibank, he said. In March, Axis Bank had announced acquisition of retail business of Citibank India for Rs 12,325 crore. The retail business includes credit cards, retail banking, wealth management and consumer loans.

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Axis Bank will have around 28.5 million savings accounts and 10.6 million active cards on completion of the merger. The bank’s credit card customer base is expected to increase by 2.5 million cards. As of October, it has 9.09 million credit cards, as per the latest RBI data. HDFC Bank is the market leader in the credit card space, followed by SBI and ICICI Bank. HDFC Bank’s market share in card spends rebounded 250 basis points in October compared to a sharp decline in the previous month, led by a strong festive value propositions, Macquire Research said in a report.

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First published on: 02-12-2022 at 01:05 IST