Kotak Mahindra Bank to acquire Deutsche Bank’s retail and private banking, wealth management businesses in India for ₹282 crore

Kotak Mahindra Bank (KMB), India’s fourth largest private sector lender by asset size, announced on Tuesday that it will acquire Deutsche Bank's retail banking, affluent private banking, and wealth management businesses in India, on a slump sale basis.

Kotak Mahindra Bank will pay in cash (a) total purchase consideration of ₹281.7 crore and (b) the amount of asset less liabilities as at closing, both subject to agreed contractual adjustments.

KMB and Deutsche Bank, in a joint statement to the stock exchanges, said the Deutsche Bank business comprises approximately ₹29,000 crore in loans, ₹16,000 crore in deposits, and ₹10,500 crore of assets under management. It served around 150,000 customers through a team of about 1,000 employees.

The statement said that the transaction is expected to be ROE accretive for KMB and CET1 accretive for Deutsche Bank.

Deutsche Bank will retain its corporate banking, investment banking and GCC businesses.  

The acquisition reflects KMB's inorganic growth strategy of pursuing targeted opportunities that strengthen its core franchise. Kotak Mahindra Bank's established presence in these segments, alongside a relationship-led approach and its broader suite of banking and investment solutions position it well to provide Deutsche Bank’s customers with a seamless and integrated experience post transition, Kotak Mahindra Bank said in the statement.

The acquisition, including closing, onboarding of customer relationships, employees and associated products, is expected to be completed by September 2027, subject to regulatory approvals.  

KMB's Managing Director and CEO Ashok Vaswani 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 also brings a high-quality customer franchise and experienced teams and adds incremental scale and adjacency opportunities."

Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, said, "This transaction marks an important step in sharpening Deutsche Bank’s portfolio and focussing on areas where we have scale, strength, and the ability to deliver sustained returns."

For Deutsche Bank, this step aligns with the group's Global Hausbank strategy of simplifying the business and focussing on competitive strengths, including the private bank’s continued focus on global ultra-high net worth clients (including non-resident Indians) outside of India.

Both the banks will work closely to ensure continuity of service for customers throughout the transition and post-closing. Approximately 1,000 Deutsche Bank employees in India are expected to join Kotak Mahindra Bank as part of this transaction, underscoring the importance both the banks place on continuity for customers and long-term opportunities for employees.