Kotak Mahindra Bank shares rose 1.6 per cent on the NSE to ₹398.90 on Wednesday after the lender signed a definitive agreement to acquire the retail, private banking and wealth management businesses of Germany’s Deutsche Bank in India for an undisclosed consideration.
The acquisition will add approximately ₹29,000 crore in loans, ₹16,000 crore in deposits and ₹10,500 crore of assets under management (AUM) to Kotak Mahindra Bank. The transaction covers around 150,000 customers and involves a cash consideration of ₹280 crore, along with the closing net assets.
The bank said the acquisition is aimed at strengthening its presence in the affluent and small and medium enterprise (SME) banking segments.
Morgan Stanley maintained its overweight rating on the stock with a target price of ₹500. The brokerage said the acquisition is strategically aligned with Kotak Mahindra Bank’s objective of expanding its affluent and SME banking franchise. It described the transaction as prima facie attractive but said it would await further details on profitability and integration timelines.
CLSA reiterated its outperform rating with a target price of ₹440. The brokerage noted that the acquired business comprises ₹29,000 crore in loans, ₹16,000 crore in deposits and ₹10,500 crore in wealth AUM as of FY26. It added that while the company indicated the acquisition would be return on equity (RoE) accretive, it did not provide details on the profitability of the business.
HSBC maintained a buy rating with a target price of ₹460. The brokerage said the acquired portfolio would add around 5.6 per cent to Kotak Mahindra Bank’s loan book, 2.8 per cent to deposits and 1.7 per cent to CASA based on the bank’s FY26 balance sheet. It added that the acquisition does not materially alter its outlook on the stock.
Nomura also retained a buy rating with a target price of ₹460. The brokerage said the acquisition reflected disciplined pricing close to book value, noting that Deutsche Bank India’s business has a strong secured asset book but a relatively weaker liability franchise. It said the capital impact is manageable and management expects the transaction to be RoE accretive, although meaningful earnings benefits are unlikely to be immediate and will depend on successful integration and client retention.
Jefferies maintained its buy rating with a target price of ₹450. The brokerage said the acquisition would increase Kotak Mahindra Bank’s loans, deposits and AUM by around 6 per cent, 3 per cent and 1 per cent, respectively, while reducing its CET1 ratio by 84 basis points. Jefferies said the deal appears accretive and offers cross-selling opportunities. It also noted that discussions with its European banking analyst suggest the transaction may be part of Deutsche Bank’s strategy to simplify its structure and focus on core markets.