Kotak Mahindra Bank has signed a definitive agreement to acquire the India retail banking, affluent private banking and wealth management business of Deutsche Bank, strengthening its presence in the country's fast-growing affluent and wealth management segments.
The transaction includes a loan portfolio of approximately ₹29,000 crore, deposits worth around ₹16,000 crore and assets under management (AUM) of nearly ₹10,500 crore. The acquired business serves around 1.5 lakh customers and employs about 1,000 people, all of whom are expected to transition to Kotak upon completion of the deal.
Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank, said the acquisition is aligned with the bank's strategy of expanding its affluent and SME businesses while adding scale and capabilities.
"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," Vaswani said.
He added that Kotak's immediate priority would be to ensure a seamless integration process while maintaining continuity for customers and employees.
For Deutsche Bank, the sale marks another step in sharpening its strategic focus under its Global Hausbank strategy. The lender will continue to concentrate on its Corporate Bank, Investment Bank and other core businesses in India, while serving global ultra-high-net-worth clients, including non-resident Indians, through its international network.
Kaushik Shaparia, CEO of Deutsche Bank Group India and Emerging Asia, said the transaction reflects the bank's strategy of focusing on businesses where it has greater scale and long-term growth potential.
"India remains a core market for Deutsche Bank, and we are closely aligned with the country's economic priorities. 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," he said.
Both banks said they will work together to ensure a smooth transition for customers throughout the integration process. The transaction, including the transfer of customer relationships, employees and products, is expected to close by September 2027, subject to regulatory approvals, including clearance from the Competition Commission of India, and other customary closing conditions.
Kotak Mahindra Bank expects the acquisition to be accretive to its return on equity, while Deutsche Bank expects the transaction to strengthen its Common Equity Tier 1 (CET1) capital ratio upon completion.
