Deutsche Bank Sells India Retail & Wealth Management Arm to Kotak Mahindra
Acquisition Details and Strategic Implications
Overview of the Deal
FRANKFURT, June 30 (Reuters) - Deutsche Bank said on Tuesday that Kotak Mahindra Bank would acquire its retail banking and wealth management business in India, as the German bank aims to streamline operations and redeploy capital.
Kotak Mahindra said the price was around $30 million.
Business Profile
The business with around 1,000 employees comprises around €2.7 billion ($3 billion) in loans and serves 150,000 customers, Deutsche Bank said.
Deutsche Bank's Strategy
The exit "represents a further step in simplifying our business and focusing on our strengths as we further enhance our profitability", said Deutsche Bank board member Claudio de Sanctis.
Reuters reported last year that Deutsche Bank was seeking bids from domestic and foreign lenders in the country.
Market Context and Challenges
Foreign Banks in India
Despite a rising number of wealthy individuals in India, one of the world's fastest-growing economies, foreign banks have struggled to boost revenues due to stiff competition from local players and regulatory limitations.
Kotak Mahindra's Perspective
Strategic Fit
Ashok Vaswani, managing director and CEO of Kotak Mahindra, said the acquisition was a "strong strategic fit".
Additional Information
($1 = 0.8778 euros)
(Reporting by Tom Sims, editing by Miranda Murray and Thomas Seythal)
