Deutsche Bank may exit retail operations in India

Deutsche Bank may exit retail operations in India

Germany's biggest lender Deutsche Bank is contemplating divesting its retail banking activities in India, according to a German newspaper report, even as the bank's retail operation in the country led to a 93% surge in net profit for the year ended March 2015 at Rs 1,406 crore.

The bank has not taken a final call as yet but if it does so, it will join RBS, which is exiting its private banking business in India along with departing from international banking to focus on the UK retail business.

Exiting Indian retail banking is part of Deutsche's larger plan to boost the European retail operation, the German daily said. The bank unveiled a massive restructuring plan at the end of April.

The newspaper reported Deutsche was also looking to sell its stake in China's Hua Xia Bank.

A Deutsche Bank spokesperson in India declined comment, terming the report "speculation".

The lender grew its advances in the country by 25% year-on-year on a low base and kept non-performing assets ratio at as low as 0.13%. Apart from retail operations, the bank has presence in equity broking, asset management and corporate finance, and has a non-banking finance company (NBFC) in the country.

The German lender was battling a troubled time globally with regulatory investigations relating to rigging of benchmark interest rates. Its global co-chief executive Anshu Jain resigned on June 7 after struggling to overcome regulatory woes and facing bitter investors and employees.

In India, the bank's advances as of March 31, 2015 were Rs 36,138 crore. Total deposits grew 48% to Rs 38,634 crore. Its cost-to-income ratio improved to 35% from 47% in the previous year. The results cover the performance of the 17 branches and do not include results of other group entities in India.

Deutsche Bank's capital base in India stood at Rs 9,453 crore as on March 31, 2015 with a capital adequacy ratio of 15.62%.