Deutsche Bank India Retail, Wealth Assets Draw Interest from Kotak, Fe
Kotak Mahindra Bank and Federal Bank are evaluating a potential acquisition of Deutsche Bank's retail and wealth management operations in India. This marks the German lender's second attempt in eight years to exit this business segment in the country.
Both Indian banks have reviewed the portfolio and are actively negotiating valuations. The assets on offer include personal loans and a portion of mortgage accounts. While the exact mix has not been independently verified, Deutsche Bank's wealth management unit in India manages assets of around Rs 25,000 crore. The bank's retail segmental revenue for FY25 stood at Rs 2,455 crore, compared with Rs 2,362 crore in the previous financial year.
Deutsche Bank had Rs 25,038 crore in retail banking assets as of March 2025. The proposed sale forms part of a larger global restructuring under CEO Christian Sewing aimed at boosting profitability. Individuals familiar with the discussions told both Kotak and Federal view this as an opportunity to expand their loan books and gain access to Deutsche Bank's wealth clientele.
In Frankfurt, CEO Sewing recently set out new operational targets through 2028, The bank is aiming for a return on tangible equity above 13 percent by 2028, compared with a current target of more than 10 percent. Deutsche Bank recorded a 10.9 percent return on tangible equity in the third quarter of 2025. Revenue is projected to rise from around EUR 32 billion in 2025 to roughly EUR 37 billion by 2028, while the cost-to-income ratio is expected to fall below 60 percent from the present target of under 65 percent. The ratio stood at 63 percent in the third quarter of 2025.
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Deutsche Bank's India wealth management unit includes debt products tied to the lender's corporate franchise, along with long-standing affluent client accounts-both of which are considered attractive for Kotak or Federal. The German bank explored a sale of its retail and wealth businesses in India in 2017 but ultimately withdrew.
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India remains its only non-European market with a retail franchise, making it an outlier the bank now seeks to correct. While Deutsche Bank operates 17 branches in India, many may be shut once an exit is formalised.
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According to reports, the sale attempt appears more determined than previous efforts, although Indian buyers are known for driving hard bargains, which could influence the outcome. No concrete timeline has emerged, and the publication reported that the process will likely be prolonged due to approvals needed from both regional and global headquarters.