Deutsche Bank Sells India Retail Banking Business to Kotak Mahindra

Deutsche Bank has agreed to sell its retail banking and wealth management business in India to Kotak Mahindra Bank as part of its strategy to streamline operations and focus on core businesses. Kotak Mahindra said the acquisition is valued at approximately $30 million and will strengthen its presence in India’s retail and wealth management segments.

The business being acquired includes around €2.7 billion ($3 billion) in loans, serves nearly 150,000 customers and employs about 1,000 people. Deutsche Bank said the transaction will help simplify its global operations, improve profitability and allow it to redeploy capital more effectively. The move follows reports last year that the German lender was exploring options to exit its Indian retail banking business.

The deal comes as foreign banks continue to face stiff competition from domestic lenders in India’s rapidly expanding financial sector. Despite the country’s growing number of affluent customers, regulatory challenges and strong local competition have limited the growth of international banks. Kotak Mahindra described the acquisition as a strategic fit that will enhance its retail banking and wealth management capabilities.