A final offer has been made for Deutsche Bank’s $2.5 billion Indian retail assets

Deutsche Bank AG’s Indian retail assets and asset management business have received binding bids from Kotak Mahindra Bank Ltd. and Federal Bank Ltd., according to people familiar with the matter, as local lenders capitalize on opportunities from foreign players trying to exit the crowded banking market.

The suitors are in advanced talks with Deutsche Bank over the assets, which are estimated to have a book size of at least $2.5 billion, the people said, asking not to be identified because the talks are private. Emirates NBD, which plans to acquire a majority stake in RBL Bank Ltd. had expressed interest in the portfolio but later decided not to make an offer, they said.

The negotiations with Kotak, founded by billionaire Uday Kotak, and the Blackstone Inc. backed Federal Bank are ongoing and could still fail, the people added.

Deutsche Bank declined to comment. Kotak, Federal Bank Emirates NBD and RBL Bank did not respond to requests for comment.

The German lender’s assets up for grabs include mortgage loans, small business loans and asset management, the people said. In 2018, Deutsche Bank reportedly halted talks to sell its retail and private wealth businesses to IndusInd Bank Ltd. because it did not receive a price that justified the sale of the profitable unit.

The bank, which currently has branches in 16 cities in India, has narrowed its focus in recent years to corporate banking and investment banking services for multinational and large domestic clients.

At the same time, Indian lenders are expanding their operations to capitalize on the boom in the country’s asset management market, fueled by robust economic growth and rising deposits. A wave of stock purchases in the Indian banking sector by Japanese and other lenders also underlines the growing demand for such assets.

Acquiring the assets of Deutsche Bank would strengthen Kotak’s position as one of India’s leading banks in wealth and private banking. It has selectively expanded its retail operations across the sector, with some consolidation taking place. Kotak acquired Standard Chartered Bank’s personal loan portfolio in India in 2024, while smaller peer Axis Bank Ltd. the acquisition of Citigroup Inc.’s Indian consumer activities. completed in 2023.

For Federal Bank, a successful deal would accelerate its transformation from a regional lender to a national financial services player. The lender said last year that Blackstone will invest more than $700 million by purchasing warrants, making it the bank’s largest shareholder.

More stories like this are available at bloomberg.com

Published on January 12, 2026