Private lender Kotak Mahindra Bank on Tuesday (June 30, 2026) announced signing a definitive agreement to acquire the retail, private banking and wealth management businesses of Germany’s Deutsche Bank in India for an undisclosed sum.

Kotak Mahindra Bank hopes to give a thrust to its affluent and small and medium enterprises business through the acquisition, as per an official statement.

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The businesses to be acquired comprise approximately ₹29,000 crore in loans, ₹16,000 crore in deposits and ₹10,500 crore of assets under management, the statement said.

Deutsche Bank, which joins a slew of other global lenders who have part-exited their retail business in the country, serves around 1.5 lakh customers through a team of about 1,000 employees under the three business segments.

Closing of the deal is expected by September next year and will include onboarding of customer relationships, employees and associated products, subject to applicable regulatory approvals, including the clearance from the Competition Commission of India.

The deal is expected to be accretive to the return on equity for KMB and capital accretive for Deutsche Bank.

"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," KMB's managing director and chief executive, Ashok Vaswani, said.

Speculation had been rife about Deutsche Bank exiting a part of its India business, and KMB's name was also being discussed among the suitors. The last such deal saw KMB's bigger rival Axis Bank acquire Citi India's consumer business for over ₹11,000 crore a few years ago.

The statement said Deutsche Bank is selling the businesses under its global 'Hausbank' strategy, which entails it being the 'go-to' bank for a person's financial needs.

Kaushik Shaparia, Deutsche Bank group India and emerging Asia CEO, said the transaction will sharpen its portfolio and focus on areas where it has scale, strength and the ability to deliver sustained returns.

"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.

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

The acquisition reflects KMB's inorganic growth strategy of pursuing targeted opportunities that strengthen its core franchise and the domestic lender's experience positions it well to provide the German bank's customers with a seamless and integrated experience post-transition.

Shares of Kotak Mahindra Bank closed 0.71% lower at ₹392.95 apiece on the BSE on Tuesday (June 30).