The business comprises about Rs 29,000 crore in loans, Rs 16,000 crore in deposits and Rs 10,500 crore of assets under management and serves around 150,000 customers through a team of about 1,000 employees.
“This transaction aligns well with our focus on the affluent and SME segments. It is a strong strategic fit and makes sound commercial sense,” Ashok Vaswani, Managing Director and CEO, Kotak Mahindra Bank, said in a statement.
“It also brings a high-quality customer franchise and experienced teams and adds incremental scale and adjacency opportunities. We look forward to warmly welcoming these customers and colleagues to the Kotak family and our priority will be on disciplined integration and ensuring continuity, while building further depth and capability in this business,” he added.
“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,” Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, said.
India’s growing integration into the global economy reinforces its position as a core market for Deutsche Bank. As the leading European bank in the country, we are closely aligned with India’s economic priorities, underpinned by our strong Corporate Bank and Investment Bank and the continued growth of our businesses, he said.
The acquisition reflects Kotak’s inorganic growth strategy of pursuing targeted opportunities that strengthen its core franchise, the bank said.
For Deutsche Bank, this step aligns with the group’s Global Hausbank strategy of simplifying the business and focusing on competitive strengths, including Private Bank’s continued focus on global ultra-high net worth clients (including non-resident Indians) outside of India.
Both banks will work closely to ensure continuity of service for customers throughout the transition and post-closing.