Only Premium & Super Premium Cards Discussion

[Deleted member 11974]

That was primarily due to Citi Bank acqusition.

correct

 

[Deleted member 11974]

Citi has been a bad acquisition for the bank ill now. Let's see how they take it ahead.

ceo yesterday said acquisition has been pretty good
hni customers are happy
attrition rate is very low

 

[Salvo08]

ceo yesterday said acquisition has been pretty good
hni customers are happy
attrition rate is very low

No one confesses that the acquisition wasn't that great. Citi wasn't into too much profit and that's why they closed the Indian business. Otherwise who sells the milking cow.

 

[Slayer]

No one confesses that the acquisition wasn't that great. Citi wasn't into too much profit and that's why they closed the Indian business. Otherwise who sells the milking cow.

Any reason as to why their Indian business wasn't performing well?

 

[PiperatGatesofDawn]

I said it's not bottom-line accretive, just yet. Also, check q4 results to understand the initial impact of Citi trans.

I'm still confused. You're showing top line there right? Citi's revenues is included in this 41% growth. It's more important to see Q1Y23-Citi + Q1Y23-Axis vs Q1Y24-Axis and that will give us a better picture of where things are.

Q4FY23 is Axis' payout. That has nothing to do with additional revenues that come in starting Q1FY24.

 

[FinGuru]

I'm still confused.

Yes you are.

If expenses (operating and non-operating) are higher than revenues then it will not be bottom line accretive.(net profits would have been even higher if there was no CITI impact) , which is the case here. My post was in jest and in connection with Magnus card devaluation. The idea was not to do any post merger analysis of line wise items in the financials. so please excuse.

 

[Deleted member 11974]

Any reason as to why their Indian business wasn't performing well?

In retail banking
Even though citis cards were the oldest ones to be issued in India,they lagged due to not being able to keep up to the competition.
Citi globally is a Investment bank,it wanted to focus on hni and private banking which was loosing traction maybe

 

[Salvo08]

Any reason as to why their Indian business wasn't performing well?

Probably their operations were restricted to select cities, they did not tap into the vibrant Indian middle class which makes or breaks a business. Even Amex is slowly scaling up in India but Citi didn't. My first CC was a Citi one in 1999 as I was in Pune then. And I presume I was a good customer to them. Then my job took me to remote places and as I changed my communication address they gave my one renewal but after went silent. Customer care wasn't all that good either. Now I'm back in Pune and they again gave me a CC 🙂.