Deutsche Bank explores sale of Indian retail banking business amid profitability challenges

Deutsche Bank is considering a sale of its retail banking operations in India, according to sources. The Germany-based lender has invited non-binding bids from both domestic and foreign banks, with an August 29 deadline for submissions, marking its latest move to streamline its global retail business.

The Indian retail banking division comprises 17 branches and generated revenues of approximately $278 million (around Rs 2,455 crore) in the fiscal year ending March 2025. Despite India’s rapid economic growth and increasing affluent population, foreign banks like Deutsche have struggled to achieve sustained profitability in the highly competitive and regulated market.

In a strategic shift, Deutsche Bank CEO Christian Sewing announced plans earlier this year to cut nearly 2,000 jobs worldwide in the retail division and significantly reduce branch footprints to improve profitability. The potential sale of the India retail unit aligns with this restructuring effort.

Deutsche Bank has maintained a presence in India since the 1980s, offering a wide range of services including treasury, derivatives, private wealth, corporate, and retail banking. India represents Deutsche Bank’s largest operation outside Germany, employing over 22,000 staff, mainly in technology and back-office roles.

A spokesperson for Deutsche Bank said, “does not comment on rumours or market speculation.”

The move follows similar exits by other foreign lenders, including Citibank’s 2022 sale of its Indian retail and credit card businesses and Standard Chartered’s sale of its personal loan book to Kotak Mahindra Bank last year, reflecting the challenging environment for foreign retail banks in India.

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(Edited by : Ajay Vaishnav)