Kotak Mahindra Bank Ltd. has entered into a definitive agreement to acquire Deutsche Bank AG’s retail banking, affluent private banking and wealth management business in India, in a strategic move aimed at expanding its presence in the affluent customer and small and medium enterprise (SME) segments. The acquisition aligns with Kotak’s inorganic growth strategy while supporting Deutsche Bank’s Global Hausbank strategy of sharpening its focus on core businesses. The business being acquired comprises loans of around Rs 29,000 crore, deposits of nearly Rs 16,000 crore and assets under management worth approximately Rs 10,500 crore. It serves about 1.5 lakh customers through a team of nearly 1,000 employees. Kotak Mahindra Bank Managing Director and CEO Ashok Vaswani said the transaction brings a high-quality customer franchise, experienced teams and additional scale, adding that the bank will focus on disciplined integration and uninterrupted customer service.
Deutsche Bank Group India and Emerging Asia CEO KaushikShaparia said the transaction allows the bank to concentrate on businesses where it has scale and competitive strength, while ensuring continuity for clients and creating growth opportunities for employees. The transaction is expected to close by September 2027, subject to regulatory approvals, including clearance from the Competition Commission of India, and other customary conditions. At closing, the deal is expected to be return on equity (ROE) accretive for Kotak Mahindra Bank and Common Equity Tier 1 (CET1) accretive for Deutsche Bank. Approximately 1,000 Deutsche Bank employees in India are expected to join Kotak as part of the transition.
In Kolkata, the acquisition is expected to strengthen Kotak Mahindra Bank’s positioning in one of eastern India’s key financial centres. With Kolkata witnessing growing demand for wealth management, private banking and SME financing, the expanded customer base and enhanced banking capabilities could help Kotak deepen its regional footprint while offering Deutsche Bank’s existing clients access to a wider suite of domestic banking and investment solutions. Industry observers believe the transaction could further intensify competition among banks catering to high-net-worth individuals and affluent customers in the city.