Germany’s largest lender, Deutsche Bank, is reportedly preparing to sell its retail banking business in India. According to a Reuters report, the bank has invited bids from both domestic and international banks to acquire its India retail operations. The move marks another major foreign bank considering a retreat from India’s highly competitive consumer banking sector.
The deadline for non-binding bids was set for August 29, although details of the offers received have not been disclosed yet. The sale could reshape Deutsche Bank’s India presence, where it currently operates 17 retail branches across key cities.
Why is Deutsche Bank Selling Its India Retail Business?
Deutsche Bank has been under pressure to improve profitability and cut costs across its global operations. In India, the retail business—covering consumer banking, wealth management, and credit operations—has faced challenges from aggressive domestic competitors and stricter regulatory norms.
Earlier this year, the bank’s CEO Christian Sewing announced a major restructuring plan. The strategy included trimming branches, cutting around 2,000 jobs, and focusing on businesses that generate higher margins. Selling the Indian retail banking arm is part of this cost-cutting and streamlining strategy.
Interestingly, this is not the first time Deutsche Bank has explored an exit. In 2017, it tried to sell its Indian retail and wealth management businesses but eventually shelved the plan. However, the renewed attempt in 2025 suggests the bank is more determined this time to restructure its India portfolio.
Financial Snapshot of Deutsche Bank’s Retail Operations in India
While the bank has not disclosed an official valuation for its Indian retail arm, reports suggest that its retail business generated revenues of $278.3 million in FY2025.
In comparison, Deutsche Bank’s overall India business—which includes corporate banking, treasury services, derivatives, and private wealth management—generated nearly $1 billion in net revenue in 2024. This puts India at par with markets like Singapore, though still smaller than its operations in Germany, the U.S., and the U.K.
Foreign Banks and Their Struggles in India
Despite being one of the world’s fastest-growing economies with a rising population of high-net-worth individuals, India has proven to be a tough market for foreign banks. The reasons include:
- Intense Competition: Indian banks like HDFC Bank, ICICI Bank, and Kotak Mahindra dominate retail banking with expansive branch networks and strong digital platforms.
- Regulatory Restrictions: Rules on branch expansion, capital requirements, and priority sector lending have created hurdles for global banks.
- Consumer Preferences: Indian customers often prefer banks with deeper local roots, leading to slower adoption of foreign players.
Deutsche Bank’s move follows a pattern set by other multinational banks:
- In 2022, Citibank exited its Indian consumer banking business, selling its credit card and retail operations in a $1 billion deal to Axis Bank.
- In 2023, Standard Chartered sold its personal loan book worth $488 million to Kotak Mahindra Bank.
- HSBC and Barclays, while still operating in India, have significantly reduced their retail focus, concentrating more on wholesale and corporate banking.
What Happens to Deutsche Bank’s Employees and Customers?
Deutsche Bank remains one of the largest foreign employers in India, with over 22,000 staff working in back-office, technology, and support functions. These divisions will not be affected by the retail business sale, as they fall under global shared services rather than consumer operations.
For customers, the transition could mean:
- Account Migration: Retail accounts and credit card customers may be transferred to whichever bank acquires the portfolio.
- Service Continuity: Regulators usually ensure smooth transitions so that depositors and borrowers face minimal disruption.
- New Banking Relationships: Customers may gain access to expanded digital services or wider branch networks depending on the buyer.
If a domestic bank acquires Deutsche Bank’s retail business, clients could benefit from better integration with local banking services. However, foreign acquirers may face similar challenges in scaling up retail operations.
Impact on India’s Banking Sector
The sale highlights a broader shift in India’s banking landscape. While foreign lenders once viewed India as a key growth market, many are now retreating due to stiff competition and regulatory complexity.
At the same time, domestic banks are aggressively expanding. Players like HDFC Bank, SBI, Axis, and Kotak Mahindra continue to dominate retail lending, credit cards, and digital banking, making it increasingly difficult for foreign banks to compete.
For Deutsche Bank, exiting retail banking in India does not mean a complete withdrawal. The bank has clarified that it will continue to focus on:
- Corporate Banking & Treasury Services
- Investment Banking
- Wealth Management for Ultra-Rich Clients
- Global Shared Services & Technology Operations
This shift suggests Deutsche Bank sees more value in India as a back-office hub and a corporate banking market rather than a retail growth driver.
Expert Take: Is This the Right Move?
Market analysts suggest that Deutsche Bank’s exit could be a strategic decision to redeploy capital into more profitable areas. With India’s retail banking heavily dominated by domestic players, foreign banks often find it difficult to scale beyond niche operations.
At the same time, India remains a critical market for Deutsche Bank. By maintaining its corporate and wealth management arms, the bank can still benefit from India’s growing economy without the burden of managing an underperforming retail business.
Deutsche Bank’s plan to sell its India retail banking operations marks another chapter in the exit of global lenders from India’s consumer banking space. With 17 branches, $278 million in retail revenues, and a large workforce, the German lender’s decision underscores the tough environment for foreign banks in India’s competitive retail market.
The coming months will determine who acquires the business and how customers are transitioned. For now, it signals a wider trend of foreign banks scaling back in India, even as the country’s domestic banks expand their dominance.
Disclaimer: This article is for informational purposes only and is based on publicly available reports. It should not be considered as investment or financial advice.
