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Deutsche Bank (DB) Likely to Vend Indian Retail Business

As part of its ongoing restructuring efforts, per a Bloomberg report, Deutsche Bank AGDB might vend its Indian retail businesses, which will help boost its capital levels. The German lender might also go ahead with the sale of its retail operations in the European countries, including Spain. However, the banking giant refrained from making comments.

This is not the first time Deutsche Bank is considering the sale of its business in India. In 2010, the bank sold the mortgage business which was acquired while taking over German retail bank, Postbank. Further, its local asset management unit was sold off.

Notably, Deutsche Bank's Indian business comprised of assets worth 693 billion rupees ($10.5 billion) as of Mar 31, 2016, per the company's filings. Moreover, the bank's profit stood at 23.4 billion rupees in the fiscal year ending Mar 31, 2016.

Earlier this month, the German banking giant planned the issuance of new shares worth €8 billion ($8.5 billion). The capital increase, expected to launch on Mar 21 and run through Apr 6, will comprise the issuance of 687.5 million new shares, with subscription rights for the bank's existing shareholders. Notably, further capital increase worth €2 billion is anticipated, through asset disposals and flotation of a minority stake of Deutsche Asset Management.

To resist another financial meltdown, banks in Europe are under stringent regulatory pressure to maintain a sturdy capital position. Therefore, amid macroeconomic headwinds and a challenging operating environment, streamlining operations will enable Deutsche Bank meet regulatory requirements, enhance its competitiveness, as well as aid in meeting investment targets across core businesses.

Deutsche Bank's shares gained around 44% over the last six months, as against 18% gain of the Zacks categorized Foreign Banks industry.

At present, Deutsche Bank carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Bank of Montreal BMO has been witnessing upward estimate revisions for the last 30 days. Further, the stock climbed over 17% over the past six months. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Credit Suisse Group AG CS has been witnessing upward estimate revisions for the last 30 days. Also, the company's shares have risen nearly 19.2% over the last six months. It currently carries a Zacks Rank #2 (Buy).

UBS Group AG UBS has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company's share price has been up more than 17%. It holds a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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