Kotak Mahindra Bank Limited and Deutsche Bank AG have entered into a definitive agreement for Kotak to acquire Deutsche Bank’s retail banking, affluent private banking and wealth management business in India.
The agreement was executed through a business transfer agreement on a slump sale basis, subject to requisite regulatory approvals and fulfilment of conditions specified in the agreement.
The business being acquired comprises approximately Rs. 29,000 crores in loans, Rs. 16,000 crores in deposits and Rs. 10,500 crores of assets under management. It serves around 150,000 customers through a team of approximately 1,000 employees across 16 branches in India.
The acquisition is aligned with Kotak’s strategy to build a scaled and customer-centric affluent and SME banking franchise. It brings together an established customer base and experienced teams, adding incremental scale and adjacency opportunities across retail, investment and SME product segments. For Deutsche Bank, the transaction is consistent with its Global Hausbank strategy of simplifying the business and focusing on areas of competitive strength, while continuing its focus on global ultra-high net worth clients outside of India.
The total purchase consideration for the acquisition is approximately Rs. 281.7 crore, to be discharged entirely in cash by Kotak Mahindra Bank. The transaction is expected to be return on equity accretive for Kotak and Common Equity Tier 1 accretive for Deutsche Bank at closing. No shares are being acquired as part of this transaction.
Approximately 1,000 Deutsche Bank employees in India are expected to join Kotak as part of the transition. Both banks have constituted joint steering committees and working teams across human resources, operations, technology and product functions to ensure a seamless handover. Closing and migration of customer relationships, employees and associated products is expected by September 2027, subject to approvals from the Competition Commission of India, National Securities Depository Limited, Central Depository Services (India) Limited and other applicable regulatory bodies.
Ashok Vaswani, Managing Director and CEO, Kotak Mahindra Bank, 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. We look forward to warmly welcoming these customers and colleagues to the Kotak family and our priority will be on disciplined integration and ensuring continuity, while building further depth and capability in this business.”
Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, said, “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. India’s growing integration into the global economy reinforces its position as a core market for Deutsche Bank. As the leading European bank in the country, we are closely aligned with India’s economic priorities, underpinned by our strong Corporate Bank and Investment Bank and the continued growth of our businesses, including DWS. We believe Kotak Mahindra Bank provides a strong domestic platform to ensure long-term continuity for our onshore private banking and wealth clients, while creating meaningful growth opportunities for our employees.”
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