Date: June 30, 2026

Transaction Overview

Kotak Mahindra Bank Limited ("Kotak Bank") executed a Business Transfer Agreement (BTA) with Deutsche Bank Aktiengesellschaft (acting through its branch in India) on June 30, 2026 for the acquisition of DBAG's retail banking, private banking and wealth management business in India ("Business Undertaking") as a going concern on a slump sale basis.

The transaction is subject to requisite approvals and fulfilment of conditions specified in the BTA.

Financial Details of Business Undertaking

  • As of March 31, 2026, the Business Undertaking had advances outstanding of approximately ₹29,000 crore
  • Total deposits were approximately ₹16,000 crore
  • Assets under management were approximately ₹10,500 crore (as per press release)
  • Serves approximately 150,000 customers

Consideration Structure

  • Total Purchase Price: Approximately ₹281.7 crore (inclusive of non-compete consideration)
  • Payment will be made in cash
  • Separately, Kotak Bank shall pay to DBAG the amount of asset less liabilities (net funding position) of the Business Undertaking as at Closing Time
  • Both amounts subject to adjustments per BTA terms
  • Total consideration to be fully written off in the quarter when closing occurs

Strategic Rationale

The acquisition aligns with Kotak's strategy to build a scaled affluent and SME banking franchise, bringing together a well-established customer base and experienced teams. The transaction represents a strong strategic fit that makes commercial sense and adds incremental scale and adjacency opportunities.

Regulatory Approvals Required

  • Approval from Competition Commission of India (CCI)
  • Approval from National Securities Depository Limited (NSDL)
  • Approval from Central Depository Services (India) Limited (CDSL) for transfer of depository business
  • Other regulatory approvals as required

Timeline

Subject to satisfactory completion or waiver of customary and contractual conditions, the transaction is expected to be completed by September 2027.

Subsidiary Arrangements

Kotak Mahindra Asset Management Company Limited and Kotak Alternate Asset Managers Limited (both wholly owned subsidiaries of Kotak Bank) have entered into non-binding term sheets with Deutsche Investments India Private Limited (subsidiary of DBAG) for:

  • Referral of clients for Portfolio Management Services (Kotak AMC)
  • Referral of clients for Investment Advisory (KAAML)

These arrangements remain subject to definitive agreements to be executed separately.

Employee Impact

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

Financial Impact Assessment

The transaction is expected to be ROE (Return on Equity) accretive for Kotak Bank and CET1 (Common Equity Tier 1) accretive for Deutsche Bank. For Kotak, the CET-1 impact is estimated at ~84 bps, largely on account of incremental RWA (Risk Weighted Assets).

Historical Financials (Deutsche Bank AG, India Branches)

The gross revenue for Deutsche Bank AG, India Branches (comprising Business Undertaking and other business lines) for the last three financial years:

  • FY23: ₹8,994 crore
  • FY24: ₹11,234 crore
  • FY25: ₹12,415 crore

Management Commentary

Ashok Vaswani, MD & CEO, Kotak Mahindra Bank: "This transaction aligns well with our focus on the affluent and SME segments. It is a strong strategic fit and makes sound commercial sense. We look forward to warmly welcoming these customers and colleagues to the Kotak family."

Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia: "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."

Integration Approach

Both banks will work closely to ensure continuity of service for customers throughout the transition and post-closing. A dedicated internal governance mechanism and program management at both banks will be led by teams with experience in M&A integration.