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Deutsche Bank unit may be bought by Tata Consultancy
DEUTSCHE Bank AG is in advanced talks to sell a technology services unit to Tata Consultancy Services Ltd, Asia's biggest software exporter by market value, people with knowledge of the matter said.
The discussions about Bonn-based Postbank Systems AG are expected to result in a deal with the Indian company by the end of the year, the people said, asking not to be identified discussing the private information.
The pandemic is accelerating moves by global banks and financial services firms to shed their captive technology centers. Tata Consultancy's potential takeover of Postbank's 1,400 employees in the South Asian nation will help Deutsche Bank chief executive officer Christian Sewing get closer to his job-cuts target.
Negotiations are ongoing and could still be delayed or fall apart, the people said. A Deutsche Bank spokeswoman declined to comment, while a representative for Tata Consultancy also didn't comment.
PB Systems generated 533 million euros (S$856 million) in revenue in 2015, according to its latest available annual report. The unit provides IT services to Deutsche Bank's formerly separate retail unit Postbank.
Deutsche Bank is currently merging Postbank's IT with its own, which is expected to render the services provided by PB Systems obsolete by the end of next year. BLOOMBERG