The India Post Payments Bank (IPPB) is gearing up to go public via Initial Public Offering (IPO) route within the next 12 months. The central government, the owner of the 100% stake in the IPPB, has started the procedures to divest its stake in the IPPB to take it public before March 2026. The IPO launch is largely due to two reasons; one being the regulatory requirements laid down by RBI and another being the IPPB’s aim to turn itself into a small finance bank (SFB).
The Reserve Bank of India’s regulations demand that payments banks that have reached a net worth of Rs 500 crore, are required to go public within 3 years of reaching that milestone. The said payments banks are also required to diversify their ownership within 3 years along with listing.
The India Post Payments Bank currently boasts its presence in 650 districts across all 36 states and union territories with 1 branch and 649 banking outlets. The bank has 1,60,000+ banking access points across the country as every Postman and Grameen Dak Sevak works as its representative/agent.
So far, IPPB has opened 11.2 crore accounts, of which, 2.68 crore accounts were opened in 2024 only with 59% accounts opened by women. Of the total, around 75% account holders belong to the rural regions across the country.
R Viswesvaran, Managing Director of IPPB told the media that “the bank has achieved its primary mandate as we will reach a critical mass by opening 13-14 crore savings account by March 2026. Now IPPB aspires to seek a Small Finance Bank (SFB) licenses to widen its product bouquet”.
In financial year ended 2024, the India Post Payments Bank reported a revenue of 1,265.2 crore with a profit after tax of Rs 34.2 crore. The Bank currently has deposits of Rs 12,000+ crore.
India Post Payments Bank was set up in August 2016 under the Department of Post, a department under Ministry of Communications of the Indian government. The central government owns 100% stake in IPPB. There are no reports as to how much stake the government is planning to divest in the IPPB but Bank’s MD says “we have written to the government seeking direction on this matter”.