Frankfort/Delhi — Deutsche Bank is currently considering the sale of its retail banking operations in India, inviting bids from both domestic and international financial institutions. This move aligns with trends observed among other foreign banks in the region.
The Germany-based institution is focused on enhancing the profitability of its retail sector. Earlier this year, CEO Christian Sewing announced plans to reduce the workforce in this division by nearly 2,000 employees by 2025, alongside a notable decrease in the number of branches.
In India, Deutsche aims for a complete divestment of its retail banking services, which includes 17 branches. This information comes from two sources familiar with the situation, who requested anonymity due to the confidential nature of the discussions.
Non-binding Bids
When asked to comment on the situation, a spokesperson for Deutsche Bank stated that the company does not address rumors or market speculation.
According to the sources, Deutsche Bank has set a deadline of August 29 for non-binding bids from various lenders regarding its Indian retail assets. Specific details about the potential bids are currently unclear.
The valuation that Deutsche is targeting for its retail operations in India also remains undisclosed.
In the financial year ending March 2025, Deutsche Bank reported retail banking revenue in India of $278.3 million, as per its financial disclosures.
Despite the increasing number of affluent individuals in India, one of the world’s fastest-growing economies, foreign banks have faced challenges in enhancing revenues due to intense competition from local firms and regulatory restrictions.
In 2022, Citibank opted to divest its credit card and retail businesses in a deal exceeding $1 billion as part of a broader strategy to reorganize its global operations.
Additionally, in the previous year, Standard Chartered sold its Indian personal loan portfolio worth $488 million to Kotak Mahindra Bank.
Established in India in the early 1980s, Deutsche Bank has offered a range of services, including treasury, derivatives, private wealth management, and both corporate and retail banking.
Employee Growth
As outlined in its annual report, the bank generated $1 billion in net revenue from India in 2024, similar to figures from Singapore, but lagging behind countries like Germany, the US, and the UK. The report does not provide a detailed analysis of the retail segment.
Employee numbers in India, particularly in back office and technology roles, have been steadily increasing in recent years. Currently, India represents Deutsche Bank’s largest market outside Germany, employing over 22,000 staff as of last year’s report.
Previously, Deutsche attempted to sell its Indian retail and wealth management sectors in 2017, but those plans were ultimately abandoned.
Reuters