Deutsche Bank is set to renew focus on its retail business in India by increasing loans to buy homes and for small and medium enterprises (SMEs) to capitalize on the present economic growth in the country.
The new approach by the lender contradicts that of several other foreign banks operating in the country which have recently reduced retail operations owing to a smaller network or higher non-performing assets following the 2008 financial meltdown, reports Livemint.
Go deeper with GlobalData
Ravneet Gill, CEO of Deutsche Bank India, said, "We will invest a lot more intent and money in those two vectors. Retail operations for Deutsche Bank forms a small part, given that we were late entrants. We have plans to ramp up the business quite significantly as we look to build on our two pillars: mortgage and business banking."
The plan has already received the go-ahead from the India management of the bank.
Gill further said that the bank’s renewed focus on mortgages and small businesses can be attributed to the heavy success rate of its foreign peers in the past few years, and he added that bad loans in the retail business did not rise despite a slowdown in the economy.
At present, the lender, operating with 17 branches in the country, is currently the smallest bank in terms of branches among the big four foreign banks operating in India, while its retail business, including loans to SMEs, comprise only 15% of its total assets.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn April 2011, the bank had sold its local credit card business to private sector IndusInd Bank, in order to focus its retail business around deposits, wealth management and secured lending.
