Deutsche Bank puts its India retail franchise on block

17 branches and 1,300 employees would also be hived off as part of Deutsche Bank India’s retail arm sale.

Nearly four years after Citibank decided to exit retail operations in India, Deutsche Bank appears to be going down the same road. “As part of the bank’s global strategy, Deutsche Bank has decided to exit retail operations in India,” said top bankers who spoke to Moneycontrol on conditions of anonymity.

An invitation for a non-binding bid was shared with top four Indian private bank last Friday (August 29), said one of the bankers cited above. “For now, the response seems to be quite muted. Though it’s too soon to say, at least the top three private banks don’t seem to have shown much interest in the proposition,” he added. The sale of the India retail business would encompass retail assets, liabilities, and wealth management business. 17 branches and 1,300 employees would also be hived off if Deutsche Bank India’s retail arm is eventually sold.

We do not comment on rumours or market speculation,” an official spokesperson of Deutsche Bank India replied to a query sent by Moneycontrol seeking confirmation on the matter.

At about Rs 25,000 – 30,000 crore, Deutsche Bank’s Indian retail assets aren’t seen to have the critical mass to attract many suitors, though the wealth business is said to be about USD 2 billion (Rs 15,000 – 16,000 crore approximately). In fact, sources say much of the retail loans in India are largely in the nature of loans against property.

“The liability franchise draws its strength from corporate book. Possibly along with the wealth management business, it could be a reasonable proposition for buyer to show interest,” said a CEO of a private bank.

In November last year, Deutsche Bank’s German parent infused Rs 5,113 crore of capital into the Indian arm making it one of the largest capital allocation plans of the bank in recent times.

“Given this background, it is not clear why Deutsche Bank AG decided to put the Indian retail operations on the block in less than year after pumping capital,” said another banker, though some believe the decision might be to cut losses."