Kotak Stock Zooms 1.69% After Deutsche Bank India Retail Business Acquisition Update

Kotak Mahindra Bank Share Price: The Kotak Mahindra Bank stock price surged as much as 1.69% to hit an intra-day high of Rs 398.90 apiece on Wednesday, July 1, after it proposed a plan to acquire Deutsche Bank India's retail & wealth business, on slump sale basis, valuing the deal at Rs 282 crores.

The Mumbai-headquartered lender noted that, “no shares are being acquired pursuant to the proposed transaction." The total Purchase Price for the acquisition of the business undertaking is approximately Rs 281.7 crore, subject to adjustments in accordance with the terms and conditions set out in the business transfer agreement (BTA). 

The business comprises approximately Rs 29,000 crore in loans, Rs 16,000 crore in deposits and Rs 10,500 crore of assets under management and serves around 1,50,000 customers through a team of about 1,000 employees.

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Both banks will work closely to ensure continuity of service for customers throughout the transition and post-closing. Approximately 1,000 Deutsche Bank employees in India are expected to join Kotak as part of this transaction, underscoring the importance both banks place on continuity for customers and long-term opportunities for employees.

Commenting on the acquisition, Ashok Vaswani, Managing Director and CEO, Kotak Mahindra Bank, said, “This transaction aligns well with our focus on the affluent and SME segments. It is a strong strategic fit and makes sound commercial sense. It also brings a high-quality customer franchise and experienced teams and adds incremental scale and adjacency opportunities."

Kaushik Shaparia, CEO, Deutsche Bank Group India and Emerging Asia, said, India’s growing integration into the global economy reinforces its position as a core market for Deutsche Bank. As the leading European bank in the country, we are closely aligned with India’s economic priorities."

As of 9:54 AM, the shares of Kotak Mahindra Bank stood at 0.54% higher at Rs 394.35 apiece.