Kotak Mahindra Bank and Federal Bank are in advanced talks to acquire the entire Indian retail and wealth management business of Deutsche Bank.
The deal in the works includes a portfolio of personal loans, some mortgages, and Deutsche Bank's wealth business in India. According to sources, Deutsche Bank's AUM in India is estimated at around Rs. 25,000 crore.
Segmental revenue for Deutsche's retail business in India was Rs. 2,455 crore for the fiscal year ending March 2025, marginally up from the previous year. Its retail assets were around Rs. 25,038 crore as of March 2025.
The potential transaction is part of a major restructuring that Deutsche Bank is pursuing globally under CEO Christian Sewing, who is pushing for higher profitability and has set long-term targets for the bank, including a return on tangible equity above 13% and revenue growth toward €37 billion by 2028.
If the deal materializes, it may mark a full exit by Deutsche from its Indian retail business, a rare move, since India was one of the few non-European markets in which it maintained a retail presence. Reports suggest Deutsche has 17 branches in India, many of which could eventually be shut down. Still, negotiations continue as both Kotak and Federal Bank consider the valuations and loan‑bundle details.
The process is bound to be long-drawn‑out as it involves careful valuation, regulatory approvals, and sign-offs from Deutsche's Indian unit and its global headquarters. So far, none of the three parties, Kotak Mahindra, Federal Bank, or Deutsche Bank, has issued any public comment on the talks.
The reported deal follows a broader pattern of foreign banks retreating from India's retail space. For instance, Citibank earlier sold its credit card and retail business in India, while Deutsche itself has tried (in 2017) to offload its Indian retail business.