Axis Bank to absorb 3,600 Citi employees post takeover

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Axis Bank to absorb 3,600 Citi employees post takeover
Commenting on the deal, the Managing Director, and Chief Executive Officer of Axis Bank, Amitabh Choudhary said that the payment of about Rs 2,235 crore will be released after getting all approvals, which will take 9 to 12 months.

Citibank has announced an agreement to sell its consumer business in India to Axis Bank. The sale includes credit card business, retail banking, wealth management, and consumer credit. 

Having acquired the loans, credit cards, wealth management and retail businesses of Citibank in India, Axis Bank is now willing to absorb Citi’s 3,600 employees. They will now become part of Axis’ workforce strength of about 86,000.

3600 employees would be placed in Axis Bank with no pay cut, the CEO of Axis Bank said.

The employees serving Citi’s consumer-banking operations will receive offers from Axis, as per the existing policies regarding compensations. As part of the deal, Axis will take over US-based Citi’s 30 lakh unique customers in India, but post-acquisition, there will be no changes in the number of Citi branches

Commenting on the deal, the Managing Director, and Chief Executive Officer of Axis Bank, Amitabh Choudhary said that the payment of about Rs 2,235 crore will be released after getting all approvals, which will take 9 to 12 months.

According to the MD, after the acquisition, the credit card business will be at number three. The goodwill amount of Citibank will be written off after the transaction

There are no plans to acquire any other microfinance company, and all efforts will be made to engage existing Citi customers, Choudhary stated.

Citibank has decided to quit retail businesses in about 13 markets so that it can concentrate on revenue streams with better returns. As part of this global strategy, it decided to withdraw from the Indian consumer banking business.

This acquisition will not affect the Citi Solution Centres in the country, which will continue to operate, leveraging the Indian talent available in the areas of technology, analytics, operations, and finance.

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