Kotak Mahindra Bank has agreed to acquire Deutsche Bank's retail banking, private banking, and wealth management business in India.
The business being acquired comprises approximately EUR 2.7 billion (INR 29.000 crore) in loans, EUR 1.5 billion (INR 16.000 crore) in deposits, and EUR 1.0 billion (INR 10.500 crore) of assets under management.
For Kotak, the acquisition forms part of the bank's inorganic growth strategy of pursuing opportunities that strengthen its existing franchise, particularly in the affluent and small and medium-sized enterprise (SME) segments. Commenting on the acquisition, Ashok Vaswani, Managing Director and CEO, Kotak Mahindra Bank, said that the deal represents a strategic and commercial fit, bringing an established customer base and experienced teams, and that integration will be managed with a focus on continuity for customers and employees.
For Deutsche Bank, the divestment is part of the bank's Global Hausbank strategy, under which it has been simplifying its business lines while concentrating on areas of existing scale and strength. Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, mentioned that the transaction allows the bank to focus on its Corporate Bank, Investment Bank, and asset manager DWS in India, while its Private Bank continues to serve global ultra-high net worth clients, including non-resident Indians, from outside the country.
Timeline and regulatory approvals
Closing of the transaction, including the onboarding of customer relationships, employees, and associated products, is expected by September 2027. The deal remains subject to regulatory approvals, including clearance from the Competition Commission of India, along with other customary closing conditions. Both banks said they will work together to maintain continuity of service for customers throughout the transition period.
At closing, the transaction is expected to be accretive to Kotak's return on equity (ROE) and to Deutsche Bank's common equity tier 1 (CET1) ratio, according to the companies.
Furthermore, the transaction reflects Deutsche Bank's stated Global Hausbank strategy of simplifying its business while retaining scale in areas of competitive strength. It also reflects Kotak's inorganic growth strategy of expanding through targeted acquisitions in segments where it already holds an established presence, rather than through organic growth alone. For Deutsche Bank, the deal separates its onshore retail and wealth management client base in India from its continuing corporate and investment banking operations in the country.
