KMB DBAG deal – disciplined pricing; execution the key Quick Note

Research evidence excerpt

KMB DBAG deal – disciplined pricing; execution the key Quick Note

Global Markets Research

Kotak Mahindra Bank KTKM.NS KMB IN 1 July 2026

EQUITY: BANKS

RatingKMB DBAG deal – disciplined pricing; execution the key Remains Buy

Target price INR 460 RemainsQuick Note

Closing priceKotak Bank (KMB IN, Buy) executed a business transfer agreement (BTA) to acquire 30 June 2026 INR 392

Deutsche Bank AG’s (DBAG; (unlisted) retail banking, private banking and wealth

management business in India on a slump sale basis, via a definitive agreement signed

30-Jun-2026 (link). Research Analysts

Kotak to acquire DBAG's retail, private banking and wealth business in India India Banks

The transaction brings on board ~INR290bn in loans (90%+ secured, ~6% of KMB's Ankit Bihani - NFASL

existing loan book), ~INR160bn in deposits (CASA ~INR42bn / 26.2% ratio, ~3% of ankit.bihani@nomura.com

KMB's deposit base), and ~INR105bn in investment AUM (~85% MF), serving ~150,000 +91 22 403 74135

customers via ~1,000 employees and 16 of 17 India branches. Consideration is Shreyas Pimple - NFASL

~INR2.8bn in cash (inclusive of non-compete), over and above an estimated ~INR130bn shreyas.pimple@nomura.com

cash outgo for net assets. Closing is expected by September 2027, subject to regulatory +91 22 403 74029

approvals. Shreya Shivani - NFASL

Disciplined pricing: close to book value pricing reflects DBAG’s soft profitability profile shreya.shivani@nomura.com

+91 22 403 74804

DBAG India's retail segment generated PBT of INR682mn in FY25 (INR635mn in FY24)

on segment assets of INR 250bn, a PBT RoA of ~0.3%, though segmental numbers can

be skewed by internal transfer pricing and overhead allocation. Total consideration

(~INR130bn in net assets plus a ~INR2.8bn franchise premium) works out close to book