Kotak Mahindra Bank will acquire Deutsche Bank’s retail banking, private banking and wealth management business in India, the bank informed the exchanges on Tuesday. The deal size is pegged at Rs 282 crore. The transaction is subject to regulatory approvals, including clearance from the Competition Commission of India, and is expected to close by September 2027.
The business being acquired comprises a loan book of around Rs 29,000 crore, deposits of Rs 16,000 crore and assets under management (AUM) of Rs 10,500 crore. It serves nearly 150,000 customers and has a workforce of about 1,000 employees, who are expected to join Kotak upon completion of the deal.
For Kotak Mahindra Bank, the acquisition marks another step in its inorganic growth strategy, strengthening its presence among affluent customers while expanding its lending and wealth management 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,” said Ashok Vaswani, managing director and CEO of Kotak Mahindra Bank. He added that the deal brings a high-quality customer franchise, experienced teams and incremental scale, with the bank focused on disciplined integration and ensuring business continuity.
For Deutsche Bank, the sale is part of its strategy to simplify operations and focus on businesses where it has greater scale and competitive strength. Kaushik Shaparia, CEO of Deutsche Bank Group India and Emerging Asia, said the transaction reflects the bank’s efforts to sharpen its portfolio while maintaining its commitment to India as a core market.
“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 will work closely to ensure a smooth transition and continuity of services for customers during and after the completion of the transaction. The acquisition is expected to be return-on-equity accretive for Kotak and Common Equity Tier-1 capital accretive for Deutsche Bank upon completion.
Shares of Kotak Mahindra Bank closed 0.7% lower at Rs 392.95 on the BSE on Tuesday.