Citibank India finally shutters consumer banking window in India, hands over keys to Axis; here’s why it quit (2024)

FAQs

Why is Citibank exiting India? ›

In the country's rapidly transforming economic and banking landscape, Citibank was unable to garner a sufficient market share in the consumer banking sector, which it forayed into in 1985. As a result of this, the group decided to exit its retail business in India.

Citi India has transferred ownership of its consumer banking business to Axis Bank (registration number L65110GJ1993PLC020769). Consumer banking customers can continue to use all existing Citi products and/or services, branches, ATMs, internet banking and Citi Mobile® App as usual.

Axis Bank announced on 1 March the completion of the acquisition of Citi India's consumer banking business for ₹11,603 crore . The bank said in a statement on Thursday that it made prudent accounting choices in relation to one-time items of ₹12,490 crore.

Yes, post transfer of your existing Citi relationship to Axis Bank, you will continue to avail same set of services that are currently available through Citi.

Although Citi's exit from consumer business is part of a global decision, it had its own – and good - reasons to review retail operations in India as well. Over the years, Citibank has been facing challenges from local competitors in India. The lender has been steadily losing market share.

In April 2021 Citigroup announced plans to exit consumer banking operations in 13 countries across Asia and Europe, including India.

The latest reshuffle finalizes Citi's new structure and is part of a broader goal to trim its global workforce of 239,000 by 20,000 over the next two years. Citi eliminated 1,500 managerial roles comprising 13% of its worldwide leaders, Fraser said as the company released its fourth-quarter results in January.

4.5/5 "Excellent!" My savings account is with CITI Bank and i am using this account more than 7-8 months. No need to maintain minimum balance since this is a salary c*ms savings. Customer service was good and i am getting alert messages for cash withdrawal , ATM service are very less but I have bank ATM at office.

Citibank's consumer business in India will be transferred to Axis Bank, as of March 1, 2023.

The acquisition is a healthy strategic fit in line with Axis Bank's GPS (Growth, Profitability & Sustainability) strategy and its focus on premium segment growth. The Bank has gained access to the large, affluent and profitable customer franchise of Citibank, which aligns well with its Premiumization strategy.

Why Citi is selling to Axis? ›

What will help is Axis Bank's ability to leverage the Citi customer base for a host of loan products such as asset-backed finance and mortgages. It's early days yet and the market is competitive but Axis seems to have got off to a good start.

The Citi acquisition will strengthen AXIS's growth journey by enhancing its deposit, credit card and wealth franchise and giving it access to salary accounts of 1,600 corporates, which would serve as an easy base to cross-sell Axis products," said Nuvama Research who in light of the value-accreting deal and improving ...

Consumer banking customers can continue to use all existing Citi products and/or services, branches, ATMs, internet banking and Citi Mobile® App as usual. Axis Bank is the provider of Citi branded consumer banking products in India temporarily and Citi India is providing certain services in respect of those products.

Axis Bank will rebrand and issue Citi cards under its own brand. Axis Bank will begin the process of recarding, or issuing rebranded Citi cards under the Axis brand, from the first half of the next financial year, said Arjun Chowdhry, Group Executive and Head, Affluent Banking, NRI, Cards and Payments.

No minimum balance needs to be maintained. A cheque book will be provided at no additional cost. SMS banking and Citibank Online facility are provided.

First announced in April 2021, the bank said it wanted to focus on international wealth centres in Hong Kong, Singapore, the United Arab Emirates and the United Kingdom and leave markets where it lacks scale to compete.

Citi failed those exams, forcing it to do additional work, the source said. The regulatory notices come as the bank works through two 2020 consent orders, in which the Fed and the OCC directed the bank to fix longstanding and widespread deficiencies in its risk management, data governance and internal controls.

CEO Jane Fraser admitted in the announcement that Citigroup doesn't have the scale they need to compete in these markets. “We believe our capital, investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our institutional businesses in Asia,” she added.

Slowing loan growth, rising interest rates, and inflation are among the causes of Citigroup's groups losses. Citi executives expect big credit losses, CNBC reports. They set $1.85 billion aside to cover credit losses in the fourth quarter of 2023.