No problems on Citi cards attrition: Axis Bank
Moghe stated that once the statutory approvals for the deal come in, the integration process will pick up speed and will be completed over the next 18-24 months.
A senior bank executive stated that the acquisition of Citi India’s customer businesses gets on track, and Axis Bank has no problems around the asset quality of the card portfolio or attrition of card customers.
Sanjeev Moghe, president & head– cards and payments, Axis Bank, said that the bank is optimistic about the portfolio on which it has done due diligence and the cost it has bid on.
“We are also pretty confident that we will be able to provide value on the price that we have paid for. Those specifications do not change”, he stated.
Moghe stated that as soon as the statutory approvals for the deal come in, the integration process will pick up speed and be completed over the following 18-24 months.
Axis Bank is not too concerned regarding the loss of customers in Citi’s cards portfolio as the trend of degrowth precedes the deal announcement.
Customer acquisition may have decreased for Citi due to aspects resulting from Covid, and the simultaneous loss and gain of card customers is a fact of life for all banks, Moghe stated.
Having stated that, Citi has clear strengths in regards to the portfolio being more affluent than the average market.
“Therefore, their spending is an obvious sign of what is taking place. Overall expenses are growing, and therefore those metrics look fine”, he stated.
There is a control on the asset quality of Citi’s card portfolio, well below the industry average, Moghe said. “Usually, you run a cards business with 4-5% of NPA (non-performing assets). Right now, it is significantly lower. This number is for the industry, and our number is well controlled”, he stated.
In partnership with EazyDiner on Wednesday, Axis Bank revealed the launch of Dining Delights, a program offering benefits on dining out for the bank’s customers. The program will provide benefits such as the approach to select from over 10,000 cost restaurants across India and Dubai, instant verification on table reservations, and exclusive deals on dining bookings made through the EazyDiner app.
Read the original article on Financial Express.
