Kotak Mahindra Bank has received Competition Commission of India (CCI) approval to acquire Deutsche Bank’s retail business in India.
The transfer from Deutsche Bank to Kotak Mahindra Bank will be structured as a slump sale on a going concern basis, the competition watchdog said.
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The agreement also provides for customer referrals between group affiliates. Customers using Deutsche Investments India’s investment advisory and portfolio management services will be referred to the relevant wholly owned subsidiaries of Kotak Mahindra Bank.
In June, Kotak agreed to acquire Deutsche Bank’s retail banking, affluent private banking and wealth management operations in India in June. Reuters has valued the deal at more than Rs 2.82bn ($29.79m).
The portfolio includes approximately €2.7bn in loans, €1.5bn in deposits and €1bn in assets under management. The businesses have nearly 150,000 customers and around 1,000 employees.
Deutsche Bank has said the sale aligns with its Global Hausbank strategy, which focuses on simplifying the group’s operations and prioritising areas where it considers its competitive position stronger.
The transaction is expected to be completed by September 2027, subject to the necessary regulatory clearances.
About 1,000 Deutsche Bank employees in India are expected to transfer to Kotak.
At the time of deal announcement, 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.
