Deutsche Bank is said to be mulling the sale of its Indian retail banking business, following other international lenders that have been retreating from the market. Two people in the know said the Germany-headquartered bank has invited domestic and foreign banks to bid for its India retail assets, including 17 branches. It has also asked them to submit non-binding bids by August 29.
The action comes as Deutsche Bank aims to make its retail business worldwide more profitable. Earlier this year, CEO Christian Sewing revealed plans to cut the headcount at the retail bank by almost 2,000 staff and dramatically reduce the number of branches in 2025. The bank is targeting a complete exit from the retail business in India while concentrating its capital on more profitable businesses. A Deutsche Bank spokesperson refused to discuss market speculation.
Challenging Market Conditions Hamper Growth
Despite India’s growing economy and rising number of high-net-worth individuals, foreign banks have faced tough competition from local lenders and strict regulatory limits. Deutsche Bank’s Indian retail banking income was $278.3 million in the financial year to end-March 2025. Other foreign players have also pulled out in the recent past, Citi sold its credit card and retail business in 2022 for over $1 billion, and Standard Chartered sold its $488 million personal loan book to Kotak Mahindra Bank last year.
The bank’s problems are a reflection of wider trends in India’s financial industry, where domestic banks hold a stronghold over retail lending and fee income opportunities are limited for foreign institutions.
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History of Deutsche Bank in India
Deutsche Bank has been present in India since the early 1980s, providing corporate and retail banking, treasury, derivatives, and private wealth management products. India is Deutsche’s biggest operation outside of Germany, with more than 22,000 employees. The bank’s total net revenue from India was $1 billion in 2024, rivalling Singapore but lagging major markets such as Germany, the US, and the UK.
This is not the bank’s second attempt to withdraw from the Indian retail banking business. A 2017 plan to exit its retail and wealth management businesses was finally abandoned. With talks ongoing, Deutsche Bank is now possibly weeding out its presence in one of the globe’s fastest-growing economies, focusing on more profitable areas instead.
