Tag: Banking News

India Post Payments Bank continues profit streak with sustained growth

 Making a transformative milestone in the realm of banking services, India Post Payments Bank (IPPB) proudly declares the continuation of its profit streak, reiterating its steadfast dedication to sustainable financial inclusion and citizen empowerment. Celebrating maiden profit journey last financial year and continuing of a successful profit run with the close of first-quarter this financial year, the IPPB is wholeheartedly committed to driving the Digital India initiative, ensuring no one is left behind, even in the remotest corners of the country.

Since its foundation, the IPPB has been motivated by the dream of extending doorstep banking services to millions of households nationwide. The journey began with pilot branches launched in Ranchi, Jharkhand and Raipur, Chhattisgarh in the year 2017 and witnessed unprecedented success in a remarkably short span to make it a dominant banking service provider at the last mile.

The IPPB is delighted to share the extraordinary accomplishment of generating a net profit of Rs. 20.16 crore during financial year 2022-23, culminating in a year of tremendous progress for the bank. A growth of 66.12 per cent in overall revenue was witnessed, which surpassed an increase in overall operating costs of 17.36 per cent, were the main factors in this accomplishment, demonstrating the power of IPPB’s customer-centric and cost-effective banking model.

“The IPPB’s success story is a testament to the collective efforts of our dedicated team, stakeholders, and most importantly, the trust of our family consisting of more tthan seven crore valuable customers,” quoted Shri J Venkatramu, MD & CEO, India Post Payments Bank. “Thanks to the slew of policy initiatives like Jan Dhan, Aadhaar, India Stack, etc & regulatory push like differentiated banking category, e-KYC, etc in the domain of financial inclusion that contributed tremendously in propelling IPPB’s success story. The bank’s prudent financial management, backed by regulatory support, has paved the way for exponential growth in customer base and product offerings,” he added.

Today IPPB has become the Most Accessible, Affordable and Trusted Bank for the unbanked & underbanked common man in India by leveraging the World’s Largest Postal Network comprising 1,55,000 Post Offices (1,35,000 in rural areas) and 3,00,000 postal employees, aided amply by the country’s Digital Public Infrastructure in delivering citizen centric financial services to the common man at their doorstep. Thus, a PHYGITAL Banking Service platform at a national scale has been created, with a differential positioning, envisaged to operate where traditional banking failed to catch up owing to conventional barriers.

This journey to profit with a purpose has been a collective effort. IPPB is indebted to tireless services of the Postmen/Gramin Dak Sevaks who have immensely contributed to the journey. IPPB will continue to sow seeds of financial prosperity with newly introduced services including loan referral services, low cost health & accidental products like Antyodaya Shramik Suraksha Yojana for Shramyogis registered on e-Shram portal, Digital Life Certificate to pensioners, citizen services initiatives like Aadhaar-mobile update, child Aadhaar enrolment, Aadhaar based banking transactions (AePS), enabling citizen access to govt. Direct Benefit Transfer programmes like PM KISAN etc. It’s initiatives like ‘Niveshak Didi’ has been able to reach to women beneficiaries across countries and helped them in providing much needed financial literacy to lay strong foundation of empowered India of the future.

Going forward, the IPPB aims to transform itself into a Universal Service platform bridging the last mile accessibility gaps using Digital Public Infrastructure.

About India Post Payments Bank

Communication with 100 per cent equity owned by Government of India. The IPPB was launched by the Prime Minister Shri Narendra Modi on September 1, 2018. The bank has been set up with the vision to build the most accessible, affordable and trusted bank for the common man in India. The fundamental mandate of India Post Payments Bank is to remove barriers for the unbanked & underbanked and reach the last mile leveraging the Postal network.

The IPPB’s reach and its operating model is built on the key pillars of India Stack – enabling Paperless, Cashless and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CB—integrated smartphone and biometric device. Leveraging frugal innovation and with a high focus on ease of banking for the masses, IPPB delivers simple and affordable banking solutions through intuitive interfaces available in 13 languages.

It is committed to provide a fillip to a less cash economy and contribute to the vision of Digital India. India will prosper when every citizen will have equal opportunity to become financially secure and empowered. Our motto stands true – Every customer is important, every transaction is significant and every deposit is valuable.

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Urban Co-operative Banks (UCBs) in the country

  To realise Prime Minister Shri Narendra Modi’s vision of ‘Sahakar se Samridhi, four important initiatives have been taken to strengthen 1,514 Urban Co-operative Banks (UCBs) in the country. Pursuant to detailed discussions held by Union Home Minister and Minister of Cooperation Shri Amit Shah, with Finance Minister Smt. Nirmala Sitharaman and Governor, Reserve Bank of India, the RBI has notified these vital measures to strengthen Urban Co-operative Banks.

1. In order to expand their business, Urban Cooperative Banks (UCBs) can now open new branches.

UCBs can now open new branches up to 10% (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation. In order to avail this facility, UCBs have to get the policy approved by their board and comply with the Financially Sound and Well Managed (FSWM) Norms.

2.      UCBs can also do One Time Settlement at par with Commercial Banks

RBI has notified a framework governing this aspect for all regulated entities including Urban Co-operative Banks. Now co-operative banks through board-approved policies may provide process for technical write-off as well as settlement with borrowers. This has brought cooperative banks at par with other commercial banks now.

3.      Revised timelines for PSL targets given to UCBs

The Reserve Bank of India has decided to extend the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e. up to March 31,2026. Deadline of March 31, 2023 to achieve PSL target of 60% has now also been extended to March 31,2024.The excess deposits, if any, after clearing the shortfall of PSL during FY 2022-23 will also be refunded to UCB.

Since UCB work in urban areas unlike commercial banks who have branches in rural areas as well, they were facing hardships on this score.

4.      Designating a Nodal Officer in RBI

    In order to meet the long pending demand of the cooperative sector for closer coordination and focused interaction, RBI has recently notified a nodal officer as well.

The above initiatives will further strengthen the Urban Co-operative Banks. Under the leadership of Prime Minister Shri Narendra Modi, the Ministry of Cooperation is committed to strengthen cooperatives and treat them at par with other forms of economic entities, both as beneficiaries and participants.

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