Axis Bank File PhotoImage Credit source: TV9 Network
They say that sometimes dreaming big becomes too much. Something similar has happened with the country’s third largest private bank. The matter is related to the retail business of Citibank. This bank had acquired the retail business of Citibank. This deal of City cost Axis Bank heavily. Axis Bank suffered a loss of 5728 crores in the March quarter. Now you must be wondering what does the deal have to do with the quarterly results. So let’s tell you the whole matter.
In fact, in the month of March, the retail business of Citibank was merged with Axis Bank. Citibank had spread its foot fast in India. But in the year 2021, the bank announced that it will end its retail business from India. Axis Bank liked this opportunity. Since Citibank International is a big name on the label. So Axis tried to capitalize on the opportunity.
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The bet played by Axis Bank to buy Citi’s retail business. That bet backfired. Due to this deal in the March quarter, Axis Bank had to suffer huge losses. On March 1, Axis, the country’s third largest private bank, acquired Citi. After this takeover, all the customers of Citi shifted to Axis.
This is how the loss happened
Axis Bank had spent Rs 12235 crore to acquire the retail business of Citibank. In this acquisition, Axis Bank got credit card, home loan, personal loan, retail banking and insurance business of Citibank. According to market experts, Citibank’s deal is also a major reason for Axis Bank’s loss. In fact, after the acquisition, Axis Bank was in charge of all the business of the city. Be it Goodwill or any other asset class. Citibank’s share in the total loan of Axis Bank is 3 to 5 percent.
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