Kotak Mahindra Bank has entered an agreement to take over Deutsche Bank’s retail banking, affluent private banking and wealth management operations in India.
According to Reuters, the deal is valued at over Rs 2.82bn ($29.79m).
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The businesses involved include about €2.7bn in loans, along with €1.5bn in deposits and €1bn of assets under management.
Together, these operations serve close to 150,000 customers and are supported by around 1,000 employees.
The deal forms part of Kotak’s inorganic expansion approach through selected transactions intended to reinforce its main banking operations.
For Deutsche Bank, the transaction fits with the group’s Global Hausbank strategy to streamline operations and concentrate on areas where it sees stronger competitive positioning.
This includes the Private Bank’s emphasis on global ultra-high net worth clients, including non-resident Indians, outside India.
Deutsche Bank Group India and Emerging Asia CEO Kaushik Shaparia 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.”
The two lenders plan to work together to maintain customer service during the transition and after the deal is completed.
Around 1,000 Deutsche Bank employees in India are expected to move to Kotak under the transaction.
Completion is anticipated by September 2027, subject to required regulatory clearances.
Once completed, the transaction is expected to be ROE accretive for Kotak Bank and CET1 accretive for Deutsche Bank.
Kotak Mahindra Bank MD 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.
“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.”
In early last year, Kotak Mahindra Bank completed the acquisition of a personal loan portfolio from Standard Chartered Bank.
