Monday, 7 April 2014

BANKING EXPECTED TO HAVE A TURNOVER OF OVER 
Rs 21000CRORE IN 5YEARS  AS CAPITAL INVESTMENT IN POST BANK OF INDIA

TheArmed with all necessary approvals from various stakeholders, including the Planning Commission and the Ministry of Finance, the DoP had submitted its application with the Public Investment Board to be put before the Cabinet Committee on Economic Affairs (CCEA) for its approval in January this year. But the matter is yet to be taken up. PBI would use over 1.3-lakh post offices as business correspondent for the last mile reach in rural areas. These post offices will foster government’s financial inclusion agenda by providing simple yet the complete suite of financial products, including deposits, loans, insurance, remittances, pension products and government subsidies,” a senior official said.
Interestingly, the PBI will run on a unique model where just 150 branches would be opened over the next five years and manned by 3,000 employees, and these would be linked to 800 head post offices across India, which will further be connected to 25,000 sub-post offices and these to 1.3-lakh branch post-offices in remote and rural areas, including places such as North-East and Naxal-hit areas.
In its application to the RBI, the DoP has stated that the PBI would need Rs.1,800 crore as total capital investment, of which the government’s contribution would be just Rs.700 crore while the rest would be arranged from domestic and foreign investors.
The PBI is expected to have a turnover of over Rs.21,000 crore in five years with a profit of Rs.300 crore.

BUSINESS » INDUSTRY

Updated: April 4, 2014 00:05 IST  

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