India Post Bank will go public soon. India Post Payments Bank (IPPB) plans to launch its IPO by next year. Meanwhile, discussions are being held to decide what percentage of the government’s 100% stake in the bank will be sold. This process is being carried out with the aim of transforming the bank into a small finance bank which will allow them to offer more products. The plan is to make the bank public by March 2026 to comply with banking regulator requirements. Currently, IPPB is fully owned by the government.
The Managing Director of IPPB, R Viswesvaran, stated that according to RBI’s rules, a payments bank must go public within three years of reaching a net worth of ₹500 crore. To comply with this rule, it will be necessary to make the bank public by March 2026. The government has been asked for guidance on this matter.
Features of IPPB?
– IPPB offers savings and current accounts.
– Directly deposits funds from government schemes into accounts.
– Provides credit facilities through third parties.
– Has 1 branch and 649 banking outlets.
– Every postman and rural post worker acts as a business agent for the bank.
– Serves the poor, workers, small businesses, and rural areas by providing banking services.
– Provides savings accounts and money transfer facilities.
– Cannot accept deposits over ₹2 lakh or offer loans.
How many accounts have been opened?
– IPPB has opened a total of 11.2 crore accounts so far.
– In 2024, 2.68 crore new accounts were opened.
– 59% of the new accounts belong to women.
– Nearly three-fourths of these accounts are from rural areas.
– The Managing Director of IPPB stated that their goal has been achieved by March 2026, IPPB plans to open 13-14 crore accounts.
Other banks going public
Large telecom payments banks like Airtel and Jio will also have to go public within three years of achieving a net worth of ₹500 crore. Currently, Fino Payments Bank is the only listed bank in this sector, and it has applied for a small finance bank license.