India Post Payments Bank (IPPB) has appealed to the government to lift the ban on recruitment. The bank is now in profit and needs at least 1,000 new employees to join steps with increasing demand. Sources in the ministry said that new recruitments were banned in 2020.
According to sources, the bank had approved the recruitment of 400 contracted employees for three years in May 2024 with its board. Overall, the bank needs 1,000 employees for fields and various departments. However, the decision to lift the recruitment ban is still under consideration.
Strong and fast growing growth
IPPB has more than 1.2 crore customers and about ₹ 20,000 crore deposit. In FY25, the bank earned a profit of ₹ 134 crore. The bank’s operating margin increased from 3.4% to 12.5% in FY25 in FY23. Minister of State for Communications Chandra S. Pammasani said, “We have a meeting with IPPB, which is now in profit and wants to increase its income and operation through better services.”
Recruitment needs and challenges
When the government had banned new recruitments, the future of Payments Bank began to look uncertain. In FY21, the bank recorded a loss of ₹ 320 crore. PMO approved the recruitment of 27 important posts in 2021. In May last year, the recruitment of 400 contracted employees for three years was approved.
Extension in rural areas
The IPPB has expanded in rural areas and less connected areas of banking. The bank has partnered with HDFC Bank, Axis Bank, Aditya Birla Capital Finance and Aadhar Housing Finance. The bank offers services like home loan, personal loan, agricultural loan, gold loan, tractor loan and farmer credit cards.
In the month of June only, the bank distributed ₹ 7 crore by giving more than 150 loans. In future, banks are planning to give small digital loans to rural entrepreneurs.