Kotak Mahindra Bank will acquire Deutsche Bank’s retail banking and wealth management business in India in a deal worth around $30 million, reported Reuters. The acquisition will help Kotak expand its presence among retail and affluent customers, while Deutsche Bank will focus on its core business areas.
The business being acquired has around 1,000 employees, serves nearly 150,000 customers and includes loans worth about 2.7 billion euros (around $3 billion). Kotak Mahindra Bank said the transaction is a good strategic fit and will support its long-term growth plans.
Deutsche Bank said the sale is part of its strategy to simplify its operations and use its capital more efficiently. Claudio de Sanctis, a member of the bank’s management board, said the move would allow the German lender to focus on its strengths while improving profitability.
The bank had been looking for buyers for the business since last year.
India remains one of the world’s fastest-growing economies and is home to a rising number of wealthy individuals. However, foreign banks have found it difficult to grow their retail business because of strong competition from Indian lenders and regulatory challenges.
Kotak Mahindra Bank’s Managing Director and CEO, Ashok Vaswani, said the acquisition fits well with the bank’s strategy and will help it strengthen its position in the country’s banking sector.