SBI, Deutsche, Barclays, HDFC, others look to bank on India Post to drive biz

NEW DELHI: The Department of Posts’s (India Post’s) infrastructure, along with common services centres (CSCS), are attracting both foreign and Indian banks. CSCS offer a host of services, including bill payment and registration for aadhar card, among others.

Global majors, including Deutsche Bank and Barclays Bank, along with domestic lenders like State Bank of India, HDFC and Yes Bank are looking to partner India Post Payment Bank (IPPB). The banks want to use India Post’s network by entering into tie-ups with IPPB for delivery of services such as loans, EMI collection, insurance and mutual funds premium etc.

The World Bank has also shown keen interest to partner IPPB for consultation and funding. “It is a huge opportunity, with CSCS in rural areas providing connectivity and services. They will sell insurance and other e-commerce activities and it will become a game-changer,” communications minister Ravi Shankar Prasad told HT.

India Post, which has done an overall business of ₹800 crore, will soon set up a panel with a separate CEO to devise a plan and service-level agreements, revenue sharing and other details. “We hope to appoint the CEO soon, who will report to India Post but will have his own team and function inde pendently. He will coordinate with various departments of India Post,” Kavery Banerjee secretary, Department of Posts told HT.

The discussions have been held with many of these banks Banerjee said. “Whatever we do should benefit customers, and have to be taken on a cost-plus basis. Payments bank to pay ments bank collaboration may not be allowed, but a payments bank to India Post is possible.”

BANKS WANT TO USE INDIA POST’S NETWORK FOR DELIVERY OF SERVICES SUCH AS LOANS, EMI COLLECTION, INSURANCE AND OTHERS