Kotak Mahindra Bank Ltd has entered into a definitive agreement to acquire Deutsche Bank’s retail banking, affluent private banking and wealth management business in India for ₹281 crore.

For Deutsche Bank, this step aligns with the group’s Global Hausbank strategy of simplifying the business and focusing on global ultra-high net worth clients (including non-resident Indians) outside of India, it said.

The business comprises approximately ₹29,000 crore (€ 2.7 billion) in loans, ₹16,000 crore (€1.5 billion) in deposits and ₹10,500 crore (€ 1 billion) of assets under management and serves around 150,000 customers through a team of about 1,000 employees.

Ashok Vaswani, Managing Director and CEO, 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 and adds incremental scale and adjacency opportunities.”

“Our priority will be on disciplined integration and ensuring continuity, while building further depth and capability in this business,” he added.

Kaushik Shaparia, CEO, 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. India’s growing integration into the global economy reinforces 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,” he added.

The acquisition reflects Kotak’s inorganic growth strategy of pursuing targeted opportunities that strengthen its core franchise and Kotak’s established presence in these segments.

Both banks will work closely to ensure continuity of service for customers throughout the transition and post-closing.

Approximately 1,000 Deutsche Bank employees in India are expected to join Kotak as part of this transaction.

Closing, including onboarding of customer relationships, employees and associated products, is expected by September 2027.

At closing, the transaction is expected to be ROE accretive for Kotak bank and CET1 accretive for Deutsche Bank.