Kotak Mahindra Wins Bid for Deutsche India Retail Unit

Kotak Mahindra Bank has emerged as the preferred bidder to acquire Deutsche Bank's retail operations in India, in a transaction valued at approximately 4,500 crore rupees, according to people familiar with the discussions. The deal, which could be finalized and announced as early as next week, includes a portfolio of retail loans and deposits totaling around 27,000 crore rupees.

The acquisition encompasses personal and home loans, lending to micro, small, and medium enterprises, retail deposits, and wealth management assets. Wealth management accounts for an estimated 7,000 crore rupees of the portfolio, with the majority concentrated in retail and MSME loans. Sources indicated that Kotak's offer slightly exceeds the net value of Deutsche Bank's assets over liabilities in this business, estimated at about 4,300 crore rupees. The bank outbid Federal Bank, which had also submitted a binding offer earlier this year.

A final agreement remains subject to closing adjustments, and representatives from both Kotak Mahindra Bank and Deutsche Bank did not respond to requests for comment. Deutsche Bank's India unit operates around 17 branches, primarily serving affluent clients. For the...