Deutsche ends India exit rumours
(7 March 2016 – India) Deutsche Bank has put an end to rumours about its future in India as well as Asia, saying it aims to build on one of the most profitable franchises amid global reorganisation that is leading to some businesses shrinking for it to remain profitable.
"Deutsche Bank India sale was never ever on the table,'' Gunit Chadha, chief executive officer of Deutsche Bank in Asia Pacific, told Indian publication, Economic Times.
"We have significant businesses in Japan, China, India, Australia, Hong Kong, ASEAN & Singapore.
The global banking industry must reinvent its business models. We ourselves have some challenges which we are proactively addressing, but our commitment to Asia Pacific is strong and stays fully intact."
Following a rate rigging probe, the German bank is reorganising its operations by cutting staff and exiting markets which are unviable. As such, there was speculation that Deutsche Bank may sell its India unit as the region itself could become a non-core area. The bank had to face some tough market conditions recently after analysts questioned its ability to pay interest on some bonds. But the bank has since reassured investors with a bond buyback plan. Its CEO Cryan said that bank is 'absolutely rock solid.'
"Asia Pacific is our strong growth region," said Chadha.
"This is no surprise as Deutsche Bank Asia Pacific PBT has doubled between 2012 and 2015 with very attractive financial metrics and the region now has five of the top 10 countries for Deutsche Bank globally."
About 12 percent of the bank’s revenue came from the Asia-Pacific region. With a focus on corporate and investment banking in the region with India the only territory that has a retail business – comprised of 17 branches across the sub-continent.
Subscribe