Kotak Mahindra Bank to acquire Deutsche Bank’s India retail, wealth business
The deal gives Kotak access to Deutsche Bank’s affluent, private banking and wealth customers, while the German lender sharpens its India focus around corporate and investment banking
New Delhi: Kotak Mahindra Bank will acquire Deutsche Bank’s retail banking, affluent private banking and wealth management business in India for Rs 282 crore, the lenders said on Tuesday. The two banks entered into a definitive agreement for the transaction, which covers about Rs 29,000 crore in loans, Rs 16,000 crore in deposits and Rs 10,500 crore in assets under management. The business serves around 1,50,000 customers and has a team of about 1,000 employees. The acquisition gives Kotak a larger base of affluent, SME, private banking and wealth customers at a time when Indian private banks are trying to deepen relationships beyond plain lending and deposits. Kotak said the transaction fits its focus on the affluent and SME segments and will add scale to its banking and investment solutions business. Ashok Vaswani, Managing Director and CEO, Kotak Mahindra Bank, said the acquisition was a strategic fit for the bank. “This transaction aligns well with our focus on the affluent and SME segments. It is a strong strategic fit and makes sound commercial sense. It also brings a high-quality customer franchise and experienced teams and adds incremental scale and adjacency opportunities,” Vaswani said. He said Kotak’s priority would be disciplined integration and continuity for customers and employees. “We look forward to warmly welcoming these customers and colleagues to the Kotak family and our priority will be on disciplined integration and ensuring continuity, while building further depth and capability in this business,” Vaswani said. About 1,000 Deutsche Bank employees in India are expected to join Kotak as part of the transaction. Both banks said they would work to ensure continuity of service for customers during the transition and after the completion of the deal. For Deutsche Bank, the sale is part of its Global Hausbank strategy, under which the German lender is simplifying its business and focusing on areas where it has scale and competitive strength. Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, said the transaction marked an important step in sharpening the bank’s India portfolio. “This transaction marks an important step in sharpening Deutsche Bank’s portfolio and focusing on areas where we have scale, strength, and the ability to deliver sustained returns,” Shaparia said. He said India remained a core market for Deutsche Bank, supported by its Corporate Bank, Investment Bank and the growth of DWS. “India’s growing integration into the global economy reinforces its position as a core market for Deutsche Bank. As the leading European bank in the country, we are closely aligned with India’s economic priorities, underpinned by our strong Corporate Bank and Investment Bank and the continued growth of our businesses, including DWS,” Shaparia said. He said Kotak would provide a strong domestic platform for Deutsche Bank’s onshore private banking and wealth clients. “We believe Kotak Mahindra Bank provides a strong domestic platform to ensure long-term continuity for our onshore private banking and wealth clients, while creating meaningful growth opportunities for our employees,” he said. The transaction is expected to close by September 2027, subject to regulatory approvals, including from the Competition Commission of India, and other customary conditions. At closing, the transaction is expected to be return-on-equity accretive for Kotak Mahindra Bank and common equity tier-1 accretive for Deutsche Bank. Kotak Mahindra Group had 5,581 branches and total assets of Rs 10,03,353 crore as of March 31, 2026. Deutsche Bank said it would continue to operate in India after the transaction, with focus areas including corporate banking, investment banking, global business services and asset management through DWS. The bank said it would continue to be the largest European bank in India after completion of the transaction.