Kotak Mahindra Bank Nears ₹4,500 Cr Deal to Acquire Deutsche Bank's India Retail Business

India's leading private lender, Kotak Mahindra Bank, is nearing a deal to acquire German major Deutsche Bank's India retail business for an estimated transaction of ₹4,500 crore.

Kotak edged out Federal Bank, which had also been in contention, to emerge as the preferred buyer. The agreement is expected to be finalised and publicly announced as early as next week, according to a report by The Economic Times.

The proposed acquisition covers a retail loan and deposit book of approximately ₹27,000 crore, comprising personal and home loans, MSME lending, retail deposits, and wealth management assets. The wealth management business alone is estimated at around ₹7,000 crore, while the bulk of the portfolio is driven by retail and MSME loans.

The net value of assets over liabilities in Deutsche Bank's India retail portfolio stands at roughly ₹4,300 crore, with Kotak expected to pay a slight premium, putting the total consideration at around ₹4,500 crore. Final deal numbers may be subject to adjustments at closing.

Deutsche Bank's India unit operates a network of around 17 branches and has carved out a niche presence among affluent clients. Its retail division posted revenue of ₹2,455 crore for the financial year ending March 2025, a 4% rise from ₹2,362 crore the previous year, with total assets in its retail banking segment at ₹25,038 crore as of March 2025.

For Kotak Mahindra Bank, the deal would meaningfully expand its consumer banking footprint by growing its loan and deposit base, while strengthening its MSME and wealth management businesses. It would also deepen the bank's presence among high-net-worth individuals and boost its share in premium urban lending markets.

For Deutsche Bank, the proposed sale is part of a broader global restructuring drive under CEO Christian Sewing, aimed at sharpening the bank's focus on core operations and improving profitability by scaling back non-essential businesses such as retail banking in India.

This deal also follows a broader trend of foreign banks retreating from or restructuring their Indian retail operations. Axis Bank acquired Citibank India's consumer business in 2022 for approximately ₹11,600 crore, covering credit cards, retail banking, wealth management, and loans, along with around 3,200 employees.

Kotak itself had previously acquired a ₹3,330 crore personal loan portfolio from Standard Chartered, while Deutsche Bank had sold its credit card portfolio to IndusInd Bank back in 2011.

Notably, Kotak and Federal Bank are bidding to take over Standard Chartered's portfolio of around 600,000 Indian customers, who hold only a credit card with the bank and have no other relationship with it.

The potential sale is part of StanChart's broader strategy to move away from single-product clients and sharpen its focus on more profitable, high-value banking relationships, according to a Reuters report.

Kotak Mahindra Bank and Federal Bank have submitted their final offers for the credit card portfolios. StanChart is currently reviewing both bids, though a decision is expected to take some time.