Kotak Mahindra to buy Deutsche Bank AG’s retail banking business in India
New Delhi, June 30: Kotak Mahindra Bank will acquire German lender Deutsche Bank AG’s retail banking, private banking and wealth management business in India for around Rs 281.7 crore in an all-cash transaction.
In a stock exchange filing today, the private sector lender said it had signed a Business Transfer Agreement (BTA) with Deutsche Bank AG, acting through its India branch, to acquire the business as a going concern on a slump sale basis.
The proposed acquisition includes Deutsche Bank’s retail banking, private banking and wealth management operations in India and remains subject to regulatory approvals and the fulfilment of conditions outlined in the agreement.
As of 31 March 2026, the business being acquired comprised advances of approximately Rs 29,000 crore and deposits of around Rs 16,000 crore.
Kotak Mahindra Bank said it would pay a purchase consideration of approximately Rs 281.7 crore in cash, subject to customary adjustments at closing.
In addition, the bank will assume the net funding position, representing assets less liabilities, upon completion of the transaction.
The deal is expected to be completed by September 2027, subject to approvals from the Competition Commission of India (CCI), National Securities Depository (NSDL), Central Depository Services (India) (CDSL) and other regulatory authorities.
The acquisition will also bring around 1,50,000 customers and nearly 1,000 employees into Kotak Mahindra Bank’s franchise, with employees expected to transition to the bank once the transaction is completed.
Separately, Kotak Asset Management Company and Kotak Alternate Asset Managers, both subsidiaries of Kotak Mahindra Bank, have signed non-binding term sheets with Deutsche Investments India to facilitate referrals of portfolio management services (PMS) and investment advisory clients, subject to definitive agreements.
Kotak Mahindra Bank said the acquisition is aligned with its long-term strategy of expanding its affluent banking, wealth management and SME banking businesses through both organic and inorganic growth.
For Deutsche Bank, the transaction forms part of its global strategy to simplify operations and sharpen its focus on corporate and investment banking businesses.
The German lender had previously explored the sale of its India retail banking business, including discussions with IndusInd Bank in 2018, although those negotiations did not result in a transaction. (BVI)
