German Economy at Risk Due to Lack of Courage and Reform

Deutsche Bank CEO Christian Sewing warns that Germany's lack of courage and clear commitment to change poses the greatest economic risk. He calls for urgent reforms, including reducing bureaucracy, faster approvals, lower energy prices, and more flexibility in the labor market. Sewing also urges Germany to take a leading role in European economic policy.

Deutsche Bank is exploring the sale of its Indian retail banking business, which comprises 17 branches across the country. This move comes as the German banking giant seeks to enhance the profitability of its retail operations. According to Reuters, the bank has invited bids from domestic and foreign banks for its retail banking assets, with a non-binding deadline of August 29 [1].

The decision to sell its Indian retail banking business follows a broader strategy by Deutsche Bank to streamline its operations and reduce costs. Earlier this year, the bank announced plans to significantly reduce the number of branches and cut about 2,000 jobs in an effort to improve profitability [1]. This latest move is part of a series of cost-cutting measures aimed at bolstering the bank's financial health.

The sale of Deutsche Bank's Indian retail and wealth management business in 2017 was previously attempted but ultimately shelved. The bank has not provided an update on the valuation of its retail business in India, but it generated revenue of Rs 278.3 million in the financial year 2025 [1].

The sale of Deutsche Bank's Indian retail banking business is part of a broader trend among foreign banks operating in India. Despite a growing number of wealthy individuals and a robust economy, foreign banks have struggled to increase their market share due to stiff competition from local players and regulatory constraints [1]. Other notable examples include Citi's sale of its credit card and retail businesses in a deal worth over $1 billion and Standard Chartered's sale of its India personal loan book to Kotak Mahindra Bank [1].

The move by Deutsche Bank underscores the challenges faced by foreign banks in India and highlights the need for strategic realignment to remain competitive. The sale of its Indian retail banking business is a significant step in this direction, allowing the bank to focus on its core strengths and more profitable areas of operation.

References:
[1] https://www.financialexpress.com/business/banking-finance-germanys-deutsche-bank-to-sell-its-india-retail-banking-business-reportnbsp-3963730/