Citigroup is acquiring the direct custody, fund services and securities clearing business of ABN Amro in select European and Asian markets, including India, for an undisclosed sum.
The acquisition would add about $4-5 billion from the global transaction services book to Citibank India's existing GTS book of $15-16 billion, Sanjay Nayar, Citigroup India chief executive, told Business Standard in Mumbai on Tuesday.
The acquisition process is expected to be completed within the next 90 days, subject to regulatory approvals.
Globally, the acquisition will add $240 billion of assets to Citigroup's $7 trillion custody portfolio. The acquisition will not involve ABN Amro's global custody activities, which operate through ABN Amro Mellon Global Securities Services.
In India, ABN Amro has sold its institutional (wholesale) domestic custody business, which excludes the depository business. The depository service in India will continue under ABN Amro franchise and provide custodial services to its private and consumer banking clients.
ABN Amro's operational and servicing staff and management will shift to Citigroup. Around nine employees working in ABN Amro's wholesale custody business will be absorbed by Citigroup as part of the sale agreement.
Citigroup's acquisition was aimed at strengthening its market leadership in the custody and the securities clearing business in the country and at expanding transaction banking offering to the domestic mutual fund industry, said Nayar.
"We intend to build up on this acquisition to satisfy our client needs and further grow our market share in the global transaction services business," he pointed out.
Citigroup will combine ABN Amro's domestic custody operations with its current global transaction services operations in the markets, which include the Netherlands, Greece, Indonesia, Poland, Russia, South Korea, Taiwan and India, servicing approximately 550 financial institutions and corporate accounts.
ABN Amro's custody and transaction services business was sub-scale in these countries. Since scaling up organically is not a viable business proposition, ABN Amro has decided to sell the smaller businesses.
"This acquisition will enable us to extend GTS servicing capabilities in key markets to meet the needs of our client base," said Robert Druskin, chief executive officer, Citigroup's Global Corporate and Investment Banking Group.
It will underscore Citigroup's commitment to offer enhanced cash management, trade, fund and securities services capabilities to clients around the world, and reinforce the firm's willingness to invest for growth in this key sector of the market, he added.
© 2025