India Post Payments Bank (IPPB) has urged the government to remove the freeze in recruitment as it turns profitable, sources in the ministry told FE. The freeze in fresh recruitment came in in 2020.
The bank estimates that it needs at least 1,000 personnel for field operations and corporate office to keep pace with rising demand, sources said.
“The internal board approved 400 contractual people in May 2024 for three years. Overall, the bank requires 1,000 personnel for field and multiple departments. The approval to lift the recruitment freeze is still under consideration,” said the source.
Stronger Growth Outlook
IPPB has over 120 million customers and around ₹20,000 crore in deposits. It reported a profit of ₹134 crore in FY25. The operating margins grew from 3.4% in FY23 to 12.5% in FY25.
“Had a meeting with India Post Payments Bank (IPPB), which has now become profitable and is aiming to further enhance its revenue and operations through improved services,” said minister of state for communications Chandra S Pemmasani.
When the government froze fresh recruitment, the future of the payments bank looked uncertain. The lender posted ₹320-crore loss in FY21, even as it tried to find its footing in the competitive digital banking space.
Recruitment in 27 critical positions was granted by the PMO in 2021 following a request from the bank. In May last year, recruitment of 400 contractual staff for three years was approved.
Expanding in Rural Credit
IPPB has ventured into rural credit and under-banked areas through tie-ups with HDFC Bank, Axis Bank, Aditya Birla Capital Finance and Aadhar Housing Finance. Products range from home and personal loans to agriculture, gold, tractor, and Kisan Credit Card loans.
The bank disbursed more than 150 loans worth ₹7 crore in June alone. It plans to offer small-ticket digital credit to rural entrepreneurs.