India Post Payments Bank to Go Public by 2026 as Part of Stake Divestment Plan

India Post Payments Bank (IPPB) is all set to go public by March 2026 as per the regulatory guidelines stipulated by Reserve Bank of India (RBI). The government has started the process of parting with its stake in the payments bank that was initially established under the Department of Post on a 100% government stake. This move is crucial as IPPB aims to comply with RBI’s licensing requirements for payments banks which mandate listing within three years of achieving a net worth of ₹500 crore.

IPPB going public will also be a crucial milestone toward achieving its long-term vision of getting elevated to the level of a small finance bank, which involves an independent banking license from the RBI. The payments bank has achieved the ₹500 crore net worth mark, compelling it to make the move towards diversified ownership and going public.

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IPPB Managing Director R. Viswesvaran assured that the bank has written to the government asking for direction on the divestment process. This is in line with RBI norms which mandate diversified ownership for payments banks after fulfilling the ₹500 crore net worth requirement.

IPPB public offering will assist the bank in maintaining regulatory norms while setting up the bank for growth and expansion in the future as it transitions towards the small finance banking segment.