Axis Bank’s Stocks Rise Day After Citibank’s Consumer Biz Deal

MUMBAI, March 31 (IANS): Scrip of Axis Bank rose during the post-noon session on Thursday, a day after the lending major said it will acquire Citibank’s consumer businesses in India.
The deal is subject to regulatory approvals.
Accordingly, the share price of Axis Bank rose to Rs 757.90 per stock, up Rs 7.70 or 1.03 per cent at 1.15 p.m. from its previous close.
On March 30, Axis Bank said it will acquire Citibank’s consumer businesses in India, subject to regulatory approvals.
The boards of Axis Bank and Citibank have approved the deal, comprising the sale of the consumer businesses of Citibank India, which includes credit cards, retail banking, wealth management and consumer loans, as well as sale of consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Ltd, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.
Post the acquisition, Axis Bank will have 28.5 million savings accounts, over 2.3 lakh ‘Burgundy’ customers and 10.6 million cards.
The acquired portfolio would increase Axis Bank’s credit card customer base by 31 per cent with an additional 2.5 million cards.
Axis Bank is presently the third largest private sector bank in India.