In a first, 13 Citi-Axis branches to co-locate till merger transition

Clear signage to represent each banks' space; Citi to retain 14 branches

In a first of its kind arrangement between two lenders, Citi and Axis Bank have agreed to co-locate or share 13 branches to ensure smooth transition of the business of the US bank to India's domestic lender.

Axis Bank, the country’s third-largest private sector lender, has acquired the consumer businesses of Citibank India and its non-banking finance arm, Citicorp Finance (India) Ltd, for Rs 11,603 crore.

On March 1, Axis Bank said that it had gained access to 21 of the Citi branches.

Now, there will be an 18-month integration period during which Citi customers will be migrated to Axis’ technology platforms.

And there would be 13 branch premises that will be serving institutional customers of Citi and retail customers of Axis. However, there will be clear demarcation in the premise, along with respective branding.

“The spaces are physically segregated -- each bank has their own entry and workspaces across 13 branches. The signage is made clear to represent each bank’s space,” a Citi spokesperson said.  

“This is a temporary arrangement for the transition period so as not to inconvenience customers, and Axis Bank has either sub leased part of the premise from Citi or from the landlord,” he said.

The Axis Bank official said that, for Axis Bank, it was like opening 13 new branches apart from the 21 they are getting from Citi.

“As far as regulation is concerned, we have discussed this with the RBI. According to guidelines, Axis has opened these new branches, so there are clearly demarcated areas. If RBI wants to inspect, it can be done as branches of a separate banks,” the official said.

On how long this arrangement will be in place, the official said, “The arrangement is not for forever. The transition period for the systems is 18 months, this arrangement could be less than that, unlikely it will be more than that.”