Kotak Mahindra Bank to acquire Deutsche Bank's retail, wealth business in India

Kotak Mahindra Bank has signed a definitive agreement to acquire Deutsche Bank's retail banking, affluent private banking and wealth management business in India, marking one of the biggest consolidation moves in the country's affluent banking segment. The acquisition will add around ₹29,000 crore in loans, ₹16,000 crore in deposits and ₹10,500 crore in assets under management (AUM) to Kotak's franchise, while bringing approximately 150,000 customers and 1,000 employees into the bank.

The transaction aligns with Kotak Mahindra Bank's strategy of expanding its presence in the affluent and small and medium enterprise (SME) segments through targeted acquisitions. The acquired business includes Deutsche Bank India's retail banking operations, affluent private banking and wealth management business, strengthening Kotak's position in a highly competitive market.

"This transaction aligns well with our focus on the affluent and SME segments. It is a strong strategic fit and makes sound commercial sense," said Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank. He said the deal would add a high-quality customer franchise, experienced teams and create opportunities to deepen the bank's capabilities. Kotak's immediate priority would be ensuring a smooth integration while maintaining continuity for customers.

For Deutsche Bank, the sale is part of its Global Hausbank strategy, under which the German lender is simplifying its business and concentrating on areas where it has greater scale and competitive strength. Following the transaction, Deutsche Bank will continue to focus on its Corporate Bank, Investment Bank and global ultra-high-net-worth private banking business, including services for non-resident Indians outside India.

Kaushik Shaparia, CEO of Deutsche Bank Group India and Emerging Asia, said the transaction sharpens the bank's portfolio while ensuring long-term continuity for its onshore private banking and wealth management clients through a strong domestic banking partner. He added that India remains a core market for Deutsche Bank, supported by its corporate and investment banking franchises and expanding asset management business.

Both banks said they will work closely to ensure uninterrupted services for customers throughout the transition. Around 1,000 Deutsche Bank employees associated with the business are expected to join Kotak as part of the acquisition.

The transaction is expected to close by September 2027, subject to regulatory approvals, including clearance from the Competition Commission of India (CCI), and the fulfilment of customary closing conditions. Upon completion, the acquisition is expected to be return on equity (ROE) accretive for Kotak Mahindra Bank and Common Equity Tier-1 (CET1) accretive for Deutsche Bank.

The acquisition reflects Kotak's continued focus on inorganic growth while reinforcing Deutsche Bank's long-term strategy of concentrating on its core global banking businesses in India.