Kotak Mahindra Bank to Acquire Deutsche Bank’s India Retail and Wealth Arms for ₹281.7 Crore

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Kotak Mahindra Bank has signed a definitive agreement to acquire Deutsche Bank’s retail banking, affluent private banking, and wealth management business in India for ₹281.7 crore.

The strategic buyout includes a substantial asset portfolio consisting of ₹29,000 crore in loans, ₹16,000 crore in deposits, and ₹10,500 crore in assets under management. Under the terms of the deal, Kotak will absorb 15,000 of the foreign lender’s customers, who will largely be mapped into its own affluent and private banking verticals. Additionally, Kotak will take over 16 of Deutsche Bank’s 17 Indian branches, leaving the German lender with only its Fort branch in Mumbai.

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To ensure service continuity, nearly 1,000 Deutsche Bank employees are expected to transition to the private sector lender. The deal is a great fit for our inorganic growth strategy for the affluent and small-to-medium enterprise segments’, said Ashok Vaswani, Managing Director & CEO of Kotak Mahindra Bank. Kotak will pay consideration of ₹281.7 crore in cash along with net asset value adjustments at closing. The transaction is expected to impact its common equity tier-1 capital by approximately 84 basis points due to incremental risk-weighted assets but it is still Return on Equity accretive.

We reaffirm our commitment to the region and India is a core global market for us’, said Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia. Kotak offers the best domestic platform to ensure continuity in the long term for our onshore clients while providing excellent growth opportunities for our transitioning staff,” he said. Subject to standard regulatory approvals, the entire transition including the onboarding of staff, products, and clients is projected to wrap up by September 2027.

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