Now Post Bank of India !!

Indian postal department is planning to start a bank, to be tentatively called the Post Bank of India. With a network of over 1.55 lakh post offices, the department already provides various financial services including a post office savings bank (POSB), postal life insurance, pension payments and money transfer services.

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.