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Do you want to open a new bank account? How about opening it at ‘Post Bank of India’? Yup you heard me right; Indian Postal Department, to be precise India Post is planning to join the Banking business in India. Few days back the Reserve Bank of India (RBI) has said that it is deciding to grant new bank licenses to the reputed entities, which have credible track-record.
Share your views about it....
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Good, man. Nice to have discussion on these kind of harmless topics. In Gemrany the postal department does banking and they have become a big commercial enterprise, acquiring international commercial companies. But our politicians unfortunately will not let any public sector undertaking grow.
Currently India Post has 1.55 lakh post offices, and it is expected that around 24k district offices may be able to get ready to offer necessary banking services in next two years or so. As per the data that was shared with Parliament on March 31, 2012, India Post has a deposits worth Rs 1.9 lakh crore, which is huge, and there were over 26 crore operational small savings accounts in the various post offices across the country. The Department of Posts has a very strong hold in the rural areas since its inception, which would be a beneficiary factor, if it’ll actually apply for the bank license to the RBI. It will be great if government gives its nod for it, I don't think RBI will oppose it.
Sounds great, but as TF said, its difficult for the bank to sustain the political pressure.
Hmm....but I can see a ray of hope this time. Few days back the Reserve Bank of India (RBI) has said that it is deciding to grant new bank licenses to the reputed entities, which have credible track-record, and we all know that India Post has a trumendous track-record of asset handling. So they mighyt allow it to open a fully operationable Bank......
Who gives a damn what RBI thinks? Politicans will screw up anything public sector by using it for their personal and vote bank purposes. So with our politicians I can't imagine Indian post become anything like Post Bank, Germany.
Postal Department has eventually appointed Ernst and Young as consultant partners for proposed 'Post Bank'. If India Post applies for the banking license then they might get a +ve nod. Government needs money, so they are likely to build as many bank branches as they can, and most the leading banks are reluctant to do so to reduce their NPAs.....so India Post may be the best option left....