Kotak Mahindra Bank Emerges Frontrunner to Acquire Deutsche Bank India Retail Portfolio; Shares Fall Over 2%

Kotak Mahindra Bank, one of India's leading private sector lenders, has emerged as the frontrunner to acquire Deutsche Bank's retail business in the country, according to an ET report. Sources said the deal could be signed and announced as early as next week, although the discussions remain private.

GoodReturns reached out to Kotak Mahindra Bank for confirmation or comment on the deal and the response is awaited.

Kotak Mahindra Bank Emerges as Frontrunner to Buy Deutsche Bank's India Retail Business

The German financial services giant, Deutsche Bank is said to be looking at this sale as part of its broader strategy to sharpen focus on core and more profitable businesses globally.

The proposed transaction involves a retail loan and deposit portfolio of around Rs 27,000 crore. This includes personal loans, home loans, MSME lending, retail deposits and wealth management assets. Deutsche Bank's India retail business has built a focused presence through around 17 branches, mainly catering to affluent urban customers across these segments.

Kotak Mahindra Bank Likely to Pay Premium for Deutsche Portfolio, Outbids Federal Bank

The portfolio's net asset value, after adjusting for liabilities, is estimated at around Rs 4,300 crore. Kotak Mahindra Bank is expected to pay a modest premium, which could take the total deal value to about Rs 4,500 crore. Reports also said Federal Bank was in the race, but Kotak is believed to have outbid it. The final amount may still see some minor changes at the time of closing.

Deutsche Bank's India retail sale fits with its wider global restructuring strategy. The bank has been focusing more on profitable corporate banking and investment banking businesses and has been trimming operations in non-core areas.

The India retail business, while small in branch count, has remained strong in terms of income generation. The segment reported revenue of Rs 2,455 crore in the year ended March 2025, up from Rs 2,362 crore in FY24. Total retail banking assets stood at Rs 25,038 crore as of March 2025, according to recent disclosures.

Under CEO Christian Sewing, Deutsche Bank has been reshaping its global business to focus on core and profitable segments. Moving out of India's retail banking business would be in line with that approach, as the lender looks to reallocate capital from non-core consumer operations.

Deutsche Bank Sold India Credit Card Portfolio to IndusInd Bank in 2011

This is not the first time Deutsche Bank has explored such a move in India. In 2018, it had held talks with IndusInd Bank to sell its India retail book, but the deal did not materialise.

The bank had also earlier reduced its retail exposure in India by selling its credit card portfolio to IndusInd Bank in 2011.

If the deal goes through, Kotak Mahindra Bank would get access to a ready retail portfolio that includes loans, deposits and wealth management customers.

Kotak Mahindra Bank Share Price Today

At closing on 23 March 2026, shares of Kotak Mahindra Bank settled at Rs 357.50, down Rs 9.25, or 2.52% for the day. The stock had opened at Rs 364.85, touched a high of Rs 364.90, and recorded a low of Rs 355.25 during the session.

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