Kotak Mahindra Bank emerges frontrunner to acquire Deutsche Bank’s India retail business, sources say

Kotak Mahindra Bank Ltd. has emerged as the frontrunner to acquire Deutsche Bank’s India retail business, sources with knowledge of the matter told CNBC-TV18 on Monday, March 23. The stock is extending its losses on Monday, in-line with the market sell-off.

Kotak Mahindra Bank’s ₹4,500 crore offer to acquire the retail business is higher than Federal Bank’s offer, sources said.

The lender is looking to acquire Deutsche Bank’s portfolio of ₹27,000 crore, which includes personal, home and MSME loans, retail deposits and wealth management business, according to the sources.

Deutsche Bank had previously held talks with IndusInd Bank to sell its India retail book in 2018, but the deal did not fructify. The lender’s India retail book sale is in-line with its global restructuring strategy to focus on profitable corporate and investment banking.

CNBC-TV18 has written to Kotak Mahindra Bank for a comment and the response is awaited at the time of publishing. Meanwhile, Deutsche Bank declined to comment.

Shares of Kotak Mahindra Bank were down 1.9% at ₹359.7 apiece around 10.10 am. The stock has declined 16.6% in the past month.

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