Kotak acquires Deutsche Bank’s India retail business

By Milan Rojan

Kotak Mahindra Bank has agreed to acquire Deutsche Bank’s retail banking, affluent private banking and wealth management business in India, expanding its presence in the affluent and SME segments while significantly strengthening its customer franchise.

Ashok Vaswani, Managing Director and Chief Executive Officer, Kotak Mahindra Bank, 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. We look forward to warmly welcoming these customers and colleagues to the Kotak family, with disciplined integration and continuity as our priority.”

The transaction has included a loan portfolio of approximately $3.05 billion, deposits of around $1.68 billion and assets under management (AUM) of about $1.10 billion. Around 150,000 customers and nearly 1,000 employees are also expected to transition to Kotak as part of the acquisition.

Kaushik Shaparia, Chief Executive Officer, Deutsche Bank Group India and Emerging Asia, 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. 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 deal has reflected Kotak’s strategy of pursuing selective inorganic growth opportunities that complement its core banking business. By integrating Deutsche Bank’s retail and wealth operations, Kotak has aimed to deepen its capabilities in wealth management and private banking while broadening its suite of services for affluent customers and SMEs.

For Deutsche Bank, the divestment has formed part of its strategy to simplify its business portfolio and focus on areas where it has established scale and competitive strength. The bank has said India will remain a core market, supported by its Corporate Bank, Investment Bank and DWS businesses.

The acquisition has been expected to close by September 2027, subject to regulatory approvals, including clearance from the Competition Commission of India, and other customary conditions.