Axis Bank may soon become the Third-Largest Credit Card Player

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Axis Bank may soon become the Third-Largest Credit Card Player
31 Mar 2022
7 min read

News Synopsis

Recently, Axis Bank announced that it will soon acquire US-based Citibank's consumer business in India for ₹12,325 crores. After this deal, the Bank could emerge as one of the biggest players in the credit card business. Many analysts believe that this acquisition will boost Axis Bank’s credit card and retail business. According to a report by ICICI Securities, Axis Bank’s Credit card base will significantly be increased by 31%. Kotak Institutional Equities said: “It (the deal) will consolidate Axis Bank’s position in the credit card market – taking its market share up by close to 400-500 basis points by the number of cards and spends. It will elevate Axis Bank to the #3 position by credit card receivables.” They also believe that the market share of the Bank in the credit card business will rise by 4% and will become 16% from the current 12%. A report regarding this deal by Kotak Institutional Equities states: “Further, the bank has indicated that the overlap on the cards book is not significant given that Citi’s strength is in the top-8 markets (primarily affluent and super affluent customers), while Axis’ strength is in deeper geographies (primarily mass and mass affluent customers, with affluent customers at 11%). Hence, the bank is confident of large customer additions.” 

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