India’s state-owned payments bank plans to double income in FY24

August 23, 2023

India’s state-owned payments bank plans to double its income this year from 7.6 billion Indian rupees ($91.94 million) in 2022/23 and seeks to partner with more banks to sell loans, Managing Director J Venkatramu said on Wednesday.

India Post Payments Bank (IPPB) reported a net profit of 200 million rupees in 2022/23, Venkatramu said, as compared with a loss of 1.6 billion rupees in the previous year.

“We aim to sustain our profitability at the same level (200 million rupees) in FY24,” he said in an interview.

The payments bank was launched in September 2018, and leverages a network comprising about 155,000 post offices and 260,000 postal department employees, including postmen.

The state-run payments bank is focusing on expanding partnerships with lenders to advance loans in rural India through its wide network and reach, Venkatramu said.

IPPB provides banks with information on borrowers’ creditworthiness to help lenders advance loans, and come up with pre-approved credit products, he said. In return, it earns income via fees from these lenders.

It has partnered with HDFC Bank, Axis Bank and non-bank lenders such as Mahindra Finance to advance loans in rural India through its wide physical presence. IPPB is also in the process of finalising a tie-up with two state-owned lenders, Bank of India and Bank of Maharashtra, Venkatramu said.