Deutsche Bank Exits India’s Retail Market, Kotak & Federal Banks Eye Multi-Crore Deal, Who Will Bag This Strategic Portfolio? Know Here

Mumbai: Deutsche Bank, one of Germany’s biggest lenders, wants out of its retail and wealth management business in India. Right now, Kotak Mahindra Bank and Federal Bank are leading the pack of buyers. Both are deep in talks, working out price and terms for a portfolio that includes personal loans, some home loans, and a wealth management arm with about Rs 25,000 crore in assets, mostly from long-standing high-net-worth clients, as per the Economic Times report.

So, why’s Deutsche Bank packing up? India was one of the rare places outside Europe where the bank built a solid retail business. But CEO Christian Sewing is pushing a global shake-up. He’s all about making the bank leaner and more profitable. The plan? Get returns on tangible equity above 13 percent by 2028, grow revenue from €32 billion to €37 billion, and cut the cost-to-income ratio below 60 percent. Selling the Indian retail business is just one piece of this bigger puzzle.

For Kotak and Federal Bank, this deal is a real shot to level up. Grabbing Deutsche Bank’s Indian retail portfolio gives them instant access to a big customer base, wealthy clients, and a slice of a global brand’s business. That fits perfectly with their push to grow retail lending and wealth management, and both banks see it as a big chance to bulk up and grab a bigger chunk of the market.

Foreign banks have always had a tough time in India. High costs, not enough branches, and fierce competition from local banks make it hard to keep up. Citibank sold its retail business to Axis Bank in 2022. Standard Chartered dumped its personal loan book with Kotak. Deutsche Bank itself sold its card business to IndusInd Bank back in 2011.

Even with all these challenges, Deutsche Bank India actually did well lately- it boosted profit by 55 percent to Rs 3,070 crore in FY25, and total income jumped from Rs 11,234 crore to Rs 12,415 crore. The bank pumped more than Rs 9,000 crore in equity into the Indian arm between 2018 and 2024. But selling this business now lines up with its bigger plan to reshape and focus its global operations.