RRB IPO
Govt asks 3 regional rural banks to draw up IPO plans by Mar, says source
This story was originally published at 17:38 IST on 18 December 2025
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NEW DELHI – The government is firming up a plan to list three regional rural banks in Haryana, Kerala, and Tamil Nadu, a senior finance ministry official said Thursday. The government has asked Haryana Gramin Bank, Kerala Gramin Bank, and Tamil Nadu Grama Bank to draw up plans for initial public offering by the end of the current fiscal, the official said.
"The three RRBs have been asked to submit details about their performance, capital adequacy ratio, along with compliance certificates with the RBI (Reserve Bank of India) and the SEBI (Securities and Exchange Board of India) norms," the official told Informist.
According to the finance ministry's guidelines, regional rural banks will be eligible to list on stock exchanges if they have net worth of at least INR 3 billion over the previous three years, have a capital adequacy of 9% in each of the last three years, and recorded operating profit of at least INR 150 million for a minimum of three out of the preceding five years. Regional rural banks should also not have any accumulated losses and should have offered at least a 10% return on equity in three of the previous five years.
The instruction to prepare draft IPO plans for the three rural banks is part of the government's broader plan to list at least five regional rural banks by March 2027.
Haryana Gramin Bank, sponsored by Punjab National Bank, reported a net profit of INR 3.77 billion for 2024-25 (Apr-Mar), with a capital-to-risk-weighted-assets ratio of 15.31%. Tamil Nadu Grama Bank, sponsored by Indian Bank, reported a net profit of around INR 3.67 billion in FY25 and a CRAR of 13.70%. Kerala Gramin Bank, backed by Canara Bank, reported a net profit of INR 3.13 billion in FY25, with a CRAR of 13.93%. End
Reported by Priyasmita Dutta
Edited by Saji George Titus
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