Deutsche Bank has decided to exit its retail banking operations in India as part of a larger global restructuring exercise. According to reports, the German lender has invited non-binding offers by August 29, seeking bids from both domestic and international players. The sale includes its retail unit spanning 17 branches across the country.
Strong Revenues, But Fierce Competition
Despite a notable footprint, Deutsche Bank’s retail arm has faced stiff competition from Indian lenders. In FY25, the unit generated $278.3 million in revenue, underscoring its significance in the local market. However, like other global players, the bank has struggled to scale retail operations profitably in India, where regulatory hurdles and dominance of homegrown banks create challenges.
Part of a Wider Global Overhaul
The move follows CEO Christian Sewing’s March announcement of sweeping reforms, which include cutting nearly 2,000 jobs and reducing the retail branch network globally in 2025. The focus is on sharpening profitability and reducing exposure in underperforming geographies. Deutsche Bank is the latest in a line of foreign institutions streamlining Indian operations, after Citi sold its $1 billion retail portfolio to Axis Bank in 2022 and Standard Chartered divested $488 million worth of loans to Kotak Mahindra Bank in 2023.
India Remains a Strategic Market
While Deutsche Bank is exiting the retail space, India continues to play a critical role in its global operations. The lender has been present in India since the early 1980s, offering corporate banking, derivatives, private wealth management, and treasury services. In 2024, India contributed $1 billion in net revenue, comparable to Singapore and ahead of several other markets. With over 22,000 employees, India remains Deutsche Bank’s largest workforce outside Germany.
Looking Ahead
This is not Deutsche Bank’s first attempt to divest its Indian retail unit. A similar effort in 2017 was shelved, showing the complexity of such deals. The current sale process will reveal how the bank balances its restructuring goals with India’s long-term importance in its global strategy. While retail exits signal retreat, Deutsche Bank is expected to maintain a strong corporate and wealth banking presence in the country.
