India Post Payments Bank continues profit streak with sustained growth

Ministry of Communications

India Post Payments Bank continues profit streak with sustained growth

Posted On: 22 AUG 2023 5:35PM by PIB Delhi

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.

IPPB is delighted to share the extraordinary accomplishment of generating an operational 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.

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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