Deutsche Bank In Talks To Sell India Retail Banking Business
If a sale goes through, Deutsche Bank will be the second large foreign bank to exit the India retail banking market, since Citi sold its business to Axis Bank in 2021.
Germany-headquartered lender Deutsche Bank is in early talks to sell its retail banking business in India, according to two people in the know.
The lender is currently discussing its options with potential bidders, the people quoted above said. The talks may or may not lead to a sale of the business, they added.
A spokesperson for Deutsche Bank India said that the lender does not “comment on rumours or market speculation.”
If a sale goes through, Deutsche Bank will be the second large foreign bank to exit the India retail banking market, since Citi sold its business to Axis Bank in 2021. UBS also sold its wealth banking business to 360 ONE for Rs 307 crore earlier this year.
Some foreign banks have slowed down their private banking business in India owing to immense competition from private sector lenders. Foreign banks have instead shifted focus to India’s wealthy customers to ensure they remain competitive in the world’s most populous markets.
Lenders like Japan’s Sumitomo Mitsui Banking Corporation have bought stake in domestic lenders to expand the India franchise. NDB Emirates is currently in the race to acquire IDBI Bank. DBS Bank India had acquired ailing Lakshmi Vilas Bank in 2020, after the Reserve Bank of India cleared the transaction.
As of March 31, Deutsche Bank India had a loan book of over Rs 67,000 crore and deposit book of over Rs 73,000 crore. It has 17 branches in the country. The total business consists of priority sector loans, public sector loans, corporate loans and retail banking loans.
