Deutsche Bank has initiated the process of selling its retail banking operations in India, according to a Reuters report citing knowledgeable sources.

Bid Solicitation for Retail Assets

The German financial institution is now engaging with both domestic and international banks to solicit bids for its retail assets. This sale aligns with an overall trend where global financial institutions are reevaluating their presence in the Indian market.

This proposed sale encompasses Deutsche Bank’s retail division, which currently operates from 17 branches across India. Specific details about potential bidders or asset valuations have not been disclosed by the bank; however, non-binding offers are due by August 29.

Challenges Faced by Foreign Banks in India

Deutsche Bank has been operational in India since the 1980s, providing services across various segments including treasury, derivatives, private wealth management, and retail banking. The bank’s Indian retail business contributed USD 278.3 million in revenue for the fiscal year ending March 2025, while its total net revenue from operations in India reached USD 1 billion by 2024. Deutsche Bank employs more than 22,000 people in the country.

Despite India’s expanding economy and increasing number of affluent individuals, foreign banks have encountered difficulties in scaling their retail banking businesses within the market. This is attributed to intense competition from major domestic players such as HDFC Bank, ICICI Bank, and State Bank of India, along with strict regulatory requirements that limit growth opportunities.

Several international banks have previously scaled back or exited their Indian retail operations. For instance, Citibank sold its credit card and retail banking businesses to Axis Bank in a deal valued at over USD 1 billion. Similarly, Standard Chartered divested its personal loan portfolio to Kotak Mahindra Bank. Deutsche Bank had also attempted to sell its retail and wealth management business in the past; however, that plan was later abandoned.

The potential divestiture indicates a shift for foreign lenders towards focusing on more profitable segments such as wholesale banking and wealth management in India. For Deutsche Bank, this move represents another step in its global restructuring efforts aimed at enhancing profitability and strengthening its balance sheet.

If completed, the sale would position Deutsche Bank among the latest international financial institutions to adjust their strategy in the competitive retail banking sector of India.