Deutsche Bank has begun the process of divesting its retail banking operations in India, according to a Reuters report citing sources familiar with the matter.
The German lender has approached both domestic and international financial institutions to invite bids for its retail assets, joining a broader trend of global banks reassessing their presence in the Indian market.
The proposed sale covers Deutsche Bank’s retail division, which currently operates across 17 branches in India. While the bank has not disclosed details regarding potential bidders or the valuation of the assets, non-binding offers are due by 29 August.
Foreign banks face challenges in India
Deutsche Bank has had a presence in India since the 1980s, offering services across treasury, derivatives, private wealth management, and retail banking. Its Indian retail business generated USD 278.3 million in revenue for the financial year ending March 2025, while the bank’s total net revenue from Indian operations reached USD 1 billion in 2024. Deutsche Bank employs more than 22,000 people in the country.
Despite India’s rapidly expanding economy and rising number of affluent individuals, foreign banks have struggled to scale their retail businesses in the market. Strong competition from large domestic players such as HDFC Bank, ICICI Bank, and State Bank of India, combined with stringent regulatory requirements, has limited growth opportunities.
Several international banks have already scaled back or exited their Indian retail operations. Citibank sold its credit card and retail banking businesses to Axis Bank in a deal valued at more than USD 1 billion. Moreover, Standard Chartered divested its personal loan portfolio to Kotak Mahindra Bank. Deutsche Bank itself previously attempted to sell its retail and wealth management business, though that plan was abandoned.
The potential exit comes at a time when foreign lenders are shifting focus towards wholesale banking and wealth management in India, sectors seen as more profitable and less competitive compared to mass-market retail banking. For Deutsche Bank, the move would mark another step in its global restructuring efforts aimed at improving profitability and strengthening its balance sheet.
If completed, the divestment would place Deutsche Bank among the latest international institutions to recalibrate their strategy in India’s competitive retail banking sector.
