After receiving a EUR 470 million ($520 million) capital injection earlier this year, the lender’s Indian unit is set to hire about 140 people and boost its retail banking and wealth management operations.
Tuesday 27, August 2019
Deutsche Bank’s only retail banking franchise outside Europe is getting more investment, amid sweeping cost cuts and restructuring taking place elsewhere at the German lender, reported Bloomberg.
Amit Bhatia, Deutsche Bank’s India Head of Private and Commercial Clients, said, “The India franchise is given the mandate to expand, as this is a growth market, and everyone has high expectations from this country.”
“Plans are on for aggressive growth, and we have been assured that capital is not going to be a concern,” added Bhatia.
The ambitions for India reflect Deutsche Bank’s wider focus on retail banking and wealth management as it pursues the sweeping restructuring unveiled by Chief Executive Officer Christian Sewing earlier this year, involving the loss of 18,000 jobs and a plan to reduce costs by about a quarter.
Additionally, some of the heaviest cuts are falling on investment banking and trading and all new hiring requires approval from Sewing.
In India, Deutsche Bank has received approval to add 120 people in retail banking plus 19 relationship managers for its local wealth business, its biggest bout of hiring in the country in several years. The bank’s spokesman said that helped by the recent capital injection, will boost loan sizes to corporate clients, launch a discretionary portfolio management service and bolster digital banking channels,
However, India isn’t immune to the wider cost cutting, earlier this year the German lender let go more than 20 people in India as part of its global move to withdraw from equity sales and trading.
The hiring and growth plans also mark the end of a period of uncertainty while Deutsche Bank was considering a sale of its local wealth and retail operations to IndusInd Bank. Those plans were abandoned in 2018 after the German bank decided the price on offer did not justify selling the business.