Berlin: Deutsche Postbank AG, the German lender being acquired by Deutsche Bank AG, is close to selling its Indian operations for about Rs11 billion (Dh916 million), according to a person with knowledge of the matter.

Dewan Housing Finance Corp, based in Mumbai, is the front- runner to buy Deutsche Postbank Home Finance and the talks are at an advanced stage, said the person, who declined to be identified before an announcement.

The purchase would boost Dewan's outstanding loans by more than 40 per cent, helping narrow the gap with larger rivals including Housing Development Finance Corp. Deutsche Postbank is selling the unit, which has a market share of about 2 per cent, as the Bonn-based lender cuts spending and bolsters capital while combining operations with Germany's largest bank. "Many international players got into India because of the India growth story" as expansion in their domestic markets slowed, said Jagannadham Thunuguntla, strategist and head of research at SMC Global Securities Ltd. in New Delhi. "While the growth story is definitely on, it is not as fast as anticipated."

Postbank spokesman Joachim Strunk in Bonn and Dewan Housing Chairman Kapil Wadhawan declined to comment. Dewan Housing fell 0.25 per cent to Rs274 as of 3:07pm local time in Mumbai trading, after earlier rising as much as 3.9 per cent. The stock has gained 46 per cent this year, compared with a 28 per cent advance in Housing Development Finance.