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

Kotak Mahindra Bank has signed a definitive agreement to acquire Deutsche Bank AG's retail banking, affluent private banking and wealth management business in India, in a transaction that will significantly expand its presence in the affluent customer segment and strengthen its lending and wealth management franchise.

The business being acquired comprises loans of about ₹290 bln, deposits of around ₹160 bln and assets under management of about ₹105 bln. It serves nearly 150,000 customers and includes a workforce of about 1,000 employees, all of whom are expected to join Kotak as part of the transaction.

The acquisition is expected to be completed by September 2027, subject to regulatory approvals, including clearance from the Competition Commission of India, and fulfilment of customary closing conditions.

Kotak Mahindra Bank Managing Director and Chief Executive Officer Ashok Vaswani said the acquisition is strategically aligned with the bank's focus on affluent individuals and small and medium enterprises. He said the transaction provides access to a high-quality customer franchise, experienced teams, and opportunities to deepen the bank's presence in adjacent business segments.

Vaswani said Kotak's immediate priority will be to ensure a disciplined integration process while maintaining uninterrupted customer service and expanding the bank's capabilities in wealth management and relationship banking.

Deutsche Bank Group India and Emerging Asia Chief Executive Officer Kaushik Shaparia said the bank will continue to focus on its corporate banking, investment banking and asset management businesses, while retaining its private banking focus on global ultra-high-net-worth clients, including non-resident Indians outside India.

Both banks said they will work together, to ensure a seamless transition for customers, throughout the integration process. The transfer of employees is also intended to ensure continuity of client relationships and preserve business expertise.

Kotak Bank said the acquisition is consistent with its inorganic growth strategy of pursuing targeted opportunities that complement its existing franchise. The bank believes its relationship-led approach, combined with its broader suite of banking and investment products, will provide Deutsche Bank's customers with an integrated platform, following completion of the transaction.

The transaction is expected to be return-on-equity accretive for Kotak Mahindra Bank, upon completion, while also improving Deutsche Bank's common equity tier-I capital position, reflecting capital benefits for both institutions.