Kotak Bank will buy Deutsche Bain
Private sector lender Kotak Mahindra Bank has entered into a definitive agreement with Deutsche Bank to acquire its retail banking, affluent private banking and wealth management business in India for Rs 281.7 crore. The business being acquired includes loans worth Rs 29,000 crore, deposits of Rs 16,000 crore and assets under management (AUM) of Rs 10,500 crore.
Approximately 1,000 Deutsche Bank employees in India are expected to join Kotak Mahindra Bank as part of this transaction.
Apart from this, 16 out of 17 branches of the foreign bank will become part of Kotak’s network. Deutsche Bank will retain the Fort, Mumbai branch. 15,000 customers of the foreign lender are also part of the deal.
Kotak said the transaction is expected to be RoE-accreative. The impact on common equity tier-1 capital will be around 84 bps, mainly due to incremental risk-weighted assets. “DB Consumer Bank customers will be connected to Kotak’s affluent and private banking segments in a big way,” Kotak Mahindra Bank said. “Kotak will be required to pay in cash (a) the total purchase consideration of Rs 281.7 crore and (b) the amount of assets less liabilities at the time of closing, both subject to agreed contractual adjustments,” it said.
The bank said the acquisition reflects Kotak’s inorganic growth strategy to pursue targeted opportunities that strengthen its core 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 sectors. It is a strong strategic fit and makes good business sense. It also brings in high-quality customer franchisees and experienced teams and adds incremental scale and adjacent opportunities.”
The lender said both banks will work together to ensure continuity of service for customers during the transition and after the closing, adding that approximately 1,000 Deutsche Bank employees in India are expected to join Kotak as part of this transaction.
The bank said the closing, including onboarding of customer relationships, employees and related products, is expected to occur by September 2027, subject to applicable regulatory approvals and other customary conditions. Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, said, “India’s increasing integration into the global economy strengthens its position as a core market for Deutsche Bank. 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.”
Disclosure: Entities controlled by the Kotak family hold a significant stake in Business Standard Private Limited
