Deutsche Bank’s India retail unit sale faces hurdles as Wealth biz AUM may have declined

Deutsche Bank's planned sale of its Indian retail operations is encountering difficulties, primarily due to a potential decrease in the assets managed by its wealth management division. Sources familiar with the situation indicate that the wealth management arm, which initially boasted approximately $4 billion in assets under management (AUM) when the sale process began in September, may have experienced a considerable reduction in its AUM.

Consequently, the potential transaction might now focus on divesting loan assets, deposits, and branch locations. Deutsche Bank's India retail network includes a loan portfolio of around Rs 12,000 crore and deposits totaling Rs 20,000 crore, spread across roughly 17 branches. Valuations for the business are estimated to be in the range of Rs 3,000 to 5,000 crore, according to banking sources involved.

One source stated that the sale is expected to proceed regardless of valuation concerns or the performance of the wealth management division, given the German headquarters' decision to exit the Indian retail market.

**Leadership Changes**

Following the announcement of the sale, several senior executives leading the wealth management business in India, including the CEO and key deputies, are reported to have left the company. These executives are believed to have joined a prominent independent wealth management platform. It is understood that significant clients and portfolios previously managed by them have also moved from Deutsche Bank following their departure.

While the exact figures remain undisclosed, sources suggest the wealth business's outstanding AUM may have fallen from approximately $4 billion to around $1 billion since the sale process commenced. This represents a decrease from approximately Rs 32,000 crore to Rs 9,000 crore (at an exchange rate of Rs 85 to the dollar).

According to a banker involved in the ongoing sale discussions, such departures of senior leadership are common during business sales, citing the Citi-Axis Bank deal as a past example. Wealth management is often personalized and relationship-driven, suggesting that business may transfer along with departing executives.

The wealth management business also includes a loan against shares (LAS) unit, which may not be a suitable fit for a standalone banking entity.

In response to inquiries, a Deutsche Bank India spokesperson stated, "As a matter of policy, we do not comment on rumors or market speculation. Deutsche Bank Group is firmly committed to India, where we maintain a substantial and diverse presence across business divisions and critical functions, underpinned by a long-standing and deep-rooted history."

**Potential Bidders**

Reports indicate that Kotak Mahindra Bank and Federal Bank have expressed interest in acquiring Deutsche Bank's India retail operations. Federal Bank is reportedly the frontrunner in what is expected to be an all-cash transaction. That said, the reality is a bit more complicated. RBL Bank, recently acquired by Emirates, may also participate in the bidding process, with a formal conclusion anticipated in January 2026.

One source familiar with the matter stated that Emirates had previously considered acquiring Deutsche Bank's retail business. With the RBL Bank acquisition finalized, RBL Bank itself, rather than Emirates, might now bid for the business.