Kotak Mahindra Bank and Federal Bank are currently in negotiations to purchase the retail and wealth management businesses of Deutsche Bank in India. This is the second attempt by the German lender to sell its retail business in India, with the previous attempt in 2017 being withdrawn. The portfolio up for sale includes personal loans, mortgages, and a wealth management business with assets under management of around Rs 25,000 crore. Deutsche Bank’s total segmental revenue from retail in India was Rs 2,455 crore in the fiscal year ended March 2025, with total assets of Rs 25,038 crore in retail banking.
The sale is part of Deutsche Bank’s global restructuring plans, initiated by CEO Christian Sewing, to make the lender more profitable. The bank aims to completely exit the retail business in India and focus on its investment banking, corporate and transaction banking, treasury and derivatives, and private wealth franchises. Foreign lenders in India, including Deutsche Bank, have struggled to compete with larger local banks due to higher costs and tight pricing.
Kotak Mahindra Bank and Federal Bank are both interested in expanding their retail businesses and see the acquisition of Deutsche Bank’s portfolio as an opportunity to gain a foothold in the wealth management space. However, the negotiations are ongoing, and the valuation of the portfolio is still being discussed. The sale process is expected to be long-drawn-out due to the need for approvals from both the regional and global headquarters of Deutsche Bank.
Deutsche Bank’s wealth management business in India includes debt investments linked to the lender’s corporate franchise and some old wealthy individual accounts, which are lucrative for local banks. The bank has 17 branches in India, and it is likely that a majority of these branches will be shut down as part of the sale. The bank’s profit in India increased 55% in the fiscal year ended March 2025, led by healthy growth in both interest and non-interest incomes. The German lender has built a franchise largely focusing on investment banking, corporate and transaction banking, treasury and derivatives, and private wealth, and has been supporting its Indian operations through repeated equity infusions.