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Saturday, December 15, 2012

Postal Bank

The India Post may soon start its own bank as a proposal of the department in this regard is at an advanced stage, member of Postal Services Board, Delhi, Kamleshwar Prasad said .
While India Post has more than 1.55 lakh post offices in the country, State Bank of India (SBI), country’s largest bank, has around 12,500 branches. There are 9,500 post offices in Gujarat alone.
However, when asked if the department had approached the Reserve Bank of India to seek a banking licence, he refused a direct answer. “The matter is in an advanced stage and I cannot say anything further on this,” he said.
Presently, the postal department offers services like savings accounts, postal life insurance, pension payments and money transfer.

According to unconfirmed reports, Indian postal department is proposing a capital investment of Rs 1,000 crore for the bank. It will be set up as a subsidiary with the postal department holding a 51% stake in it. It also intends to rope in major public sector banks like the State Bank of India to pick up a 25% stake in the new venture . Of the remaining equity, 5% will be offered to employees of India Post and the rest will be offered to the public.

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