Kotak Mahindra Bank to Acquire Deutsche Bank's Retail, Wealth Businesses in India

Kotak Mahindra Bank has entered into a definitive agreement to acquire Deutsche Bank’s retail banking, affluent private banking and wealth management businesses in India in one of the biggest consolidation moves in the country’s banking sector.

The acquisition includes a loan book of approximately ₹29,000 crore, deposits of about ₹16,000 crore and assets under management (AUM) of close to ₹10,500 crore. The business has about 150,000 customers and employs around 1,000 people.

The deal is expected to enhance Kotak Mahindra Bank’s presence in premium banking, private banking and wealth management segments, besides expanding its customer base and product portfolio.

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Strategic Fit:

Commenting on the acquisition, Ashok Vaswani, Managing Director and Chief Executive Officer of Kotak Mahindra Bank, said, "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 brings a high-quality customer franchise and experienced teams while adding incremental scale and adjacency opportunities. We look forward to welcoming these customers and colleagues to the Kotak family, with disciplined integration and continuity as our priorities," he added.

Kaushik Shaparia, Chief Executive Officer, Deutsche Bank Group India and Emerging Asia, said the transaction supports the bank's strategy of sharpening its business 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. India remains a core market for Deutsche Bank, supported by our Corporate Bank, Investment Bank and the continued growth of businesses including DWS," he said.

“Deutsche Bank’s onshore private banking and wealth management clients will continue to benefit from a strong domestic platform at Kotak Mahindra Bank, providing continuity of service and growth opportunities for its employees,” Shaparia added.

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Seamless Transition:

The acquisition is part of Kotak Mahindra Bank’s inorganic growth strategy. Deutsche Bank said the divestment was consistent with its global Hausbank strategy under which it will continue to focus on its corporate and investment banking franchise in India and serving global ultra-high-net-worth clients, including non-resident Indians, from international locations.

Both banks said they will work together to ensure customers have a seamless transition. Deutsche Bank has around 1,000 employees in India who are expected to move to Kotak Mahindra Bank as part of the deal.

The deal, including the transfer of customer relationships, employees and products, is expected to be completed by September 2027, subject to regulatory approvals, including clearance from the Competition Commission of India (CCI), and other customary conditions.

Upon completion, the acquisition is expected to be return-on-equity accretive for Kotak Mahindra Bank and CET1 capital accretive for Deutsche Bank.