This article first appeared on GuruFocus.
People familiar with the discussions said Deutsche Bank’s (NYSE:DB) India retail assets and wealth management business have attracted binding bids from Kotak Mahindra Bank and Federal Bank, as domestic lenders look to capitalize on foreign banks reassessing their presence in the crowded market. The assets under negotiation are estimated to have a book size of at least $2.5 billion, with talks described as advanced but still ongoing and potentially subject to change. Emirates NBD, which is pursuing a majority stake in RBL Bank, had earlier expressed interest in the portfolio before ultimately deciding not to submit a bid.
The people said the assets on offer include mortgage lending, small business loans and wealth management operations, reflecting Deutsche Bank’s continued effort to narrow its India focus toward corporate and investment banking for multinational and large domestic clients. The German lender currently operates branches in 16 cities across India and has previously explored a sale of its retail and private wealth business, including discussions in 2018 that were called off after failing to secure a valuation that justified exiting the profitable unit.
A transaction could strengthen Kotak’s position in India’s wealth and private banking segment, following selective expansion efforts that have included the acquisition of Standard Chartered’s personal loan portfolio in 2024. For Federal Bank, backed by Blackstone, a deal could support its ambition to evolve from a regional lender into a national financial services player, building on Blackstone’s commitment last year to invest more than $700 million through warrants and underscoring broader interest in India’s rapidly expanding wealth management market.