Deutsche Bank Intends to Divest Indian Retail and Wealth Unit

Deutsche Bank AG’s DB India arm is exploring the sale of its retail and wealth management business, according to The Economic Times report published on Outlook Business. The bank had earlier examined an exit in 2017, but the plan was put on hold.The potential sale includes 17 retail branches and a large wealth platform that manages assets for high-net-worth clients. The DB’s India business posted strong results in FY25, supported by impressive income growth, yet the operation remains under review as the bank focuses on simplifying its global footprint.Details of DB’s India Business SalePer the report, Kotak Mahindra Bank and Federal Bank have shown initial interest in the portfolio. Both institutions have reviewed the business and held early discussions. The sale process is still at a preliminary stage. Any potential transaction would require agreement on valuation, detailed due diligence and regulatory approvals.Deutsche Bank’s India retail and wealth unit had total assets of INR25,038 crore ($2.8 billion) and generated INR2,455 crore ($277.4 million) in revenues during fiscal 2025. The wealth business has long-standing relationships with affluent clients and is regarded as a strong franchise within the company’s Asian network.India is Deutsche Bank’s only retail market outside Europe. A sale would therefore mark a significant adjustment to the bank’s geographic structure.Reasons Behind Deutsche Bank’s Planned ExitThe company’s potential move is broadly aligned with its long-term strategy under the “Global Hausbank” growth phase, which prioritizes capital efficiency, market leadership and disciplined resource allocation. DB has been increasingly focused on markets and business lines where it can achieve stronger scale advantages and sustainable profitability.As part of its updated roadmap (announced on Nov. 17, 2025), Deutsche Bank is targeting a return on tangible equity (RoTE) of more than 13% by 2028, driven by tighter cost control, productivity improvements and sharper strategic focus. Redeploying capital into scalable, capital-light businesses such as advisory, asset gathering, payments and institutional services remains central to these priorities.A potential exit from a smaller, non-core consumer market such as India could help DB redirect resources toward areas aligned with long-term value creation. The company also highlighted that future growth is expected to rely on automation, AI-enabled efficiency gains and deeper engagement in businesses offering consistent profitability and stronger competitive positioning.Our Take on DB’s StrategyThe proposed exit supports Deutsche Bank’s broader effort to simplify its operations and reallocate capital more effectively. Selling a non-core retail franchise enables the bank to reduce complexity, sharpen strategic focus and reinforce progress toward its medium-term profitability and efficiency goals. The move positions the company to channel resources into businesses offering stronger scale, better returns, and greater strategic alignment with its 2028 transformation plan.In the past six months, shares of Deutsche Bank have gained 17.8% compared with the industry’s 16.1% growth.Image Source: Zacks Investment ResearchCurrently, DB sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Similar Steps Taken by Other Finance FirmsEarlier this week, The Goldman Sachs Group, Inc. GS reached an agreement with ING Bank Slaski to divest its Polish asset management firm, TFI. The deal, targeted for completion in the first half of 2026 pending regulatory signoff, will end Goldman’s presence in the Polish retail investment market.Goldman’s TFI, under its stewardship, had grown to serve more than 736,000 clients and had 48 billion PLN in assets under management.In September 2025, HSBC Holdings PLC HSBC agreed to sell its retail banking business in Sri Lanka to Nations Trust Bank PLC (“NTB”). The deal includes the accounts, credit cards, and retail loans of roughly 2,00,000 clients of Sri Lanka’s branch.As part of the transaction, NTB will provide an employment offer to the existing staff. This deal, expected to be completed in the first half of 2026, subject to regulatory approvals, is anticipated to generate an immaterial pre-tax gain for HSBC by completion.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks