Kotak to buy Deutsche's India retail, wealth business

Mumbai: Kotak Mahindra Bank and Deutsche Bank AG have entered into a definitive agreement under which Kotak will acquire Deutsche Bank's retail banking, private banking and wealth management business in India, the two lenders announced on Tuesday.

The business being acquired comprises approximately ₹29,000 crore (2.7 billion) in loans, ₹16,000 crore (1.5 billion) in deposits and ₹10,500 crore (1.0 billion) in AUM. It serves around 150,000 customers and has a workforce of around 1,000 employees.

"This transaction aligns well with our focus on the affluent and SME segments," said Ashok Vaswani, managing director and CEO of Kotak Mahindra Bank. "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." The banks said they would ensure continuity of service for customers during and after the transaction. Around 1,000 Deutsche Bank India employees are expected to join Kotak, underscoring both banks' focus on long-term employee opportunities.


The transaction, including the onboarding of customer relationships, employees and associated products, is likely to close by September 2027, subject to regulatory approvals, including the Competition Commission of India, and other customary conditions precedent. Upon completion, the transaction is expected to be return-on-equity (RoE) accretive for Kotak Mahindra Bank and common equity tier-1 (CET1) accretive for Deutsche Bank.

"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," said Kaushik Shaparia, CEO of Deutsche Bank Group India and Emerging Asia.