Increasing Revenues for India Post through Expanding Channeling of Financial Services
This report analyzes possibilities for increasing revenues for India Post through expanding channeling of financial services. The Indian postal network is among the largest networks in the world in terms of area covered and population served, and c...
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| Format: | Other Financial Sector Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2008/06/16369968/india-post-financial-services-increasing-revenues-india-post-throughbrexpanding-channeling-financial-services-india-post-financial-services-increasing-revenues-india-post-throughbrexpanding-channeling-financial-services http://hdl.handle.net/10986/12914 |
| Summary: | This report analyzes possibilities for
increasing revenues for India Post through expanding
channeling of financial services. The Indian postal network
is among the largest networks in the world in terms of area
covered and population served, and constitutes an important
mechanism of achieving transportation and communication.
Within India Post, the Post Office Savings Bank (POSB) is
one of the oldest and largest financial institutions (with
largest deposit base) in the country. The key objective of
POSB is to provide people living in rural, semi-urban,
remote and inaccessible areas of the country with an easy
and reliable means of making investments, making remittances
and operating savings accounts. It is of strategic
importance for POSB to increase market-based revenues so as
to gain better control of its market orientation and revenue
structure. In addition, though POSB still retains
competitive advantages over commercial banks, it will not be
long before the competition replicates these advantages.
Hence, in order to better leverage the vast network of the
post offices and huge customer base, India Post requires
evaluating the introduction of a wide range of products and
services in the financial services area. This will also lead
to improvement of the earnings from savings related products
vis-a-vis the total earnings. Banks (e.g. foreign, private
banks) lack the network infrastructure to reach underserved
segments in semi-urban and rural areas. There is a demand
for expansion of financial service offerings by the post
office. Some products and services which will help India
Post increase its revenues have been identified. Some of
these products and services have been introduced as
localized initiatives by individual circles. However the
experience of these local initiatives needs to be shared
and, based on India Post's experience, rolled out to
other locations. |
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