Satisfied with Citi card business, says Axis Bank – Times of India
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MUMBAI: Axis Bank has said that it is confident about the quality of Citibank’s credit card portfolio and the persistency & spending were satisfactory. Speaking to newspersons here, Axis Bank head (cards & payments) Sanjeev Moghe said that he was confident that the integration would be completed within the indicated timeframe. However, it has not reached the stage of seeking customer approvals for the integration.
Moghe denied reports that attritions in the card base had caused a dent in the valuation.
“We are confident of what we have done diligence on, the price that we have bid on and confident that we will be able to deliver value on the price that we paid,” he said. He acknowledged that Citi had seen attrition in card numbers but attributed this to the normal attrition witnessed by every bank, which gets covered by new additions. He said that Citi retained its strength in terms of affluent and super affluent customers and the portfolio was better than the industry in terms of spending and defaults.
Moghe was speaking at the launch of the bank’s partnership with EazyDiner — a startup platform for table reservation, food discovery and restaurant payments. The partnership would enable both credit and debit card customers to avail of discounts at premium restaurants across the country. Customers would be eligible for double-dip discounts, which include discounts from EazyDiner and Axis Bank for which they will need to download the app.“There has been a surge of around 132% in the number of customers who prefer to discover and dine out at premium restaurants, as compared to pre-Covid times. This significant recovery is led by Delhi NCR, Mumbai and Bengaluru followed by Goa, which is now emerging as a stronger destination over the last two years. Additionally, customers are eating out 3.2 times a month as opposed to 2.1 times a month,” said EazyDiner founder Kapil Chopra.He added that the casual dining market was at $17 billion and EazyDiner was aiming to integrate this market by helping customers to discover and book tables. “India is known for its diversity in cuisine and the future of food is going to be experiential,” said Chopra.
Moghe denied reports that attritions in the card base had caused a dent in the valuation.
“We are confident of what we have done diligence on, the price that we have bid on and confident that we will be able to deliver value on the price that we paid,” he said. He acknowledged that Citi had seen attrition in card numbers but attributed this to the normal attrition witnessed by every bank, which gets covered by new additions. He said that Citi retained its strength in terms of affluent and super affluent customers and the portfolio was better than the industry in terms of spending and defaults.
Moghe was speaking at the launch of the bank’s partnership with EazyDiner — a startup platform for table reservation, food discovery and restaurant payments. The partnership would enable both credit and debit card customers to avail of discounts at premium restaurants across the country. Customers would be eligible for double-dip discounts, which include discounts from EazyDiner and Axis Bank for which they will need to download the app.“There has been a surge of around 132% in the number of customers who prefer to discover and dine out at premium restaurants, as compared to pre-Covid times. This significant recovery is led by Delhi NCR, Mumbai and Bengaluru followed by Goa, which is now emerging as a stronger destination over the last two years. Additionally, customers are eating out 3.2 times a month as opposed to 2.1 times a month,” said EazyDiner founder Kapil Chopra.He added that the casual dining market was at $17 billion and EazyDiner was aiming to integrate this market by helping customers to discover and book tables. “India is known for its diversity in cuisine and the future of food is going to be experiential,” said Chopra.
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