Deutsche Bank to Exit Retail Business in India; Kotak and Federal Bank may buy its Business
Deutsche Bank, one of Germany’s largest banks, is planning to exit its retail and wealth management business in India. At present, Kotak Mahindra Bank and Federal Bank are the top contenders to buy this business. Both banks are in advanced talks to decide the price and terms for a portfolio that includes personal loans, some home loans, and a wealth management division that handles about ₹25,000 crore in assets, mostly from long-time high-net-worth clients, according to an Economic Times report.
Why is Deutsche Bank exiting?
India was one of the few countries outside Europe where the bank had built a strong retail business. But CEO Christian Sewing is pushing a global restructuring plan. His focus is on making the bank more efficient and profitable. The goal is to raise returns on tangible equity to above 13% by 2028, increase revenue from €32 billion to €37 billion, and reduce the cost-to-income ratio to below 60%. Selling the Indian retail business is part of this broader strategy.
For Kotak Mahindra Bank and Federal Bank, this deal is a major opportunity. Buying Deutsche Bank’s retail business in India will give them immediate access to a large customer base, wealthy clients, and a part of a global bank’s portfolio. This supports their aim to expand retail lending and wealth management, and both banks see it as a chance to grow and strengthen their position in the market.
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the Bank is continuously growing in North America, Asia and key emerging markets. With more than 90,130 employees in over 57 countries worldwide, Deutsche Bank offers unparalleled financial services throughout the world. The Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Are Foreign Banks Struggling in India?
Foreign banks have always found India difficult. High operating costs, limited branch networks, and strong competition from Indian banks make it hard to scale up. Citibank sold its retail business to Axis Bank in 2022. Standard Chartered sold its personal loan portfolio to Kotak. Deutsche Bank itself sold its credit card business to IndusInd Bank in 2011.
Financials of Deutsche Bank
Even with these challenges, Deutsche Bank India performed well recently. It increased its profit by 55% to ₹3,070 crore in FY25, and its total income rose from ₹11,234 crore to ₹12,415 crore. The bank also invested over ₹9,000 crore in equity into its Indian unit between 2018 and 2024. But selling this part of its business now aligns with its global plan to reorganize and focus on key markets.
