Exploring Strategic Shifts in Foreign Banking in India

The sale of its Indian retail banking assets is reportedly being explored by Deutsche Bank, with bids having been invited from both domestic and foreign lenders in the country. This action positions the bank as the most recent foreign institution to consider reducing its involvement in India. A commitment has been made by the Germany-based bank to enhance the profitability of its retail business. It was stated by CEO Christian Sewing in March that the headcount at the retail bank would be reduced by nearly 2,000 people in 2025, and that there would be a “significant” reduction in the number of branches.

According to two sources with direct knowledge of the matter, the retail banking business in India is intended to be completely sold by Deutsche Bank. This business spans 17 branches. The sources, who requested anonymity because the discussions were private, stated that a deadline of August 29 had been set by Deutsche for non-binding bids from several banks for its Indian retail assets. The specifics of any potential bids that were received were not immediately apparent. The valuation being sought by the bank for its retail business in India was also not immediately clear. Disclosures from Deutsche show that its retail banking revenue in India for the financial year ending in March 2025 amounted to $278.3 million.

In spite of the growing number of affluent individuals in India, which is considered one of the world’s most rapidly expanding economies, foreign banks have encountered difficulties in increasing their revenues. This has been attributed to intense competition from local players and restrictions imposed by regulations. In 2022, a decision was made by Citi to sell its credit card and retail businesses in a transaction valued at more than $1 billion, a move that was part of a global strategy to overhaul the bank in response to a shrinking market share. Similarly, last year, a personal loan book in India valued at $488 million was sold by Standard Chartered to the Indian lender Kotak Mahindra Bank.

Since the beginning of the 1980s, Deutsche Bank has maintained an active presence in India, providing a range of services that include treasury, derivatives operations, private wealth management, and corporate and retail banking. According to its annual report, net revenue of $1 billion was generated by the bank from India in 2024, a figure that is roughly on par with Singapore but falls behind countries such as Germany, the U.S., and Britain. The report does not offer a breakdown of its retail business.

In recent years, an increase has been seen in employee growth in India, which includes back office and technology operations. Overall, India represents Deutsche Bank’s largest operation outside of Germany, with more than 22,000 staff being employed there at the end of last year, as stated in its most recent annual report. An attempt was made by Deutsche to sell its Indian retail and wealth management business in 2017, but the plan was later abandoned.