Kotak, Federal Eye Deutsche Bank’s India Retail Unit

Both Indian lenders have examined the portfolio and are negotiating valuations. The assets under consideration include personal loans and a portion of mortgage accounts. While the precise mix has not been independently confirmed, Deutsche Bank’s wealth management arm in India is reported to manage assets of around Rs 250 billion. Its retail revenue for FY25 stood at Rs 24.55 billion, up from Rs 23.62 billion in the previous year.

Public disclosures show Deutsche Bank held Rs 250.38 billion in retail banking assets as of March 2025. The planned sale is part of a wider global restructuring by CEO Christian Sewing aimed at strengthening profitability. Individuals familiar with the matter said both Kotak and Federal view the acquisition as an opportunity to expand their loan books and gain access to Deutsche Bank’s wealth clientele.

Spokespersons for Kotak Mahindra Bank and Federal Bank did not respond to queries, while Deutsche Bank also declined to comment.

As noted by The Economic Times, foreign banks in India continue to struggle against larger domestic lenders due to higher operational costs and tighter pricing. A recent example is Citibank’s 2022 sale of its retail and credit card business to Axis Bank in a transaction exceeding USD 1 billion. Earlier this year, Kotak Mahindra Bank acquired a Rs 33.3 billion personal loan portfolio from Standard Chartered. Deutsche Bank had previously sold its credit card business to IndusInd Bank in 2011.