Archive · 25 Dec 2025
Finance Ministry Directs Three RRBs to Submit IPO Plans by March
The government has asked three regional rural banks (RRBs) to prepare plans for going public by the end of March.
These banks are Haryana Gramin Bank, Kerala Gramin Bank, and Tamil Nadu Grama Bank.
The government wants to list at least five RRBs in the next two years.
The banks need to meet certain rules, like having enough money and making profits.
The government owns half of these banks, while the states and sponsor banks own the rest.
The banks made a lot of money last year, but not as much as the year before because of some new costs.
The Ministry of Finance has directed three RRBs to submit their IPO plans by the end of March.
The RRBs involved are Haryana Gramin Bank, Kerala Gramin Bank, and Tamil Nadu Grama Bank.
The government plans to list at least five RRBs in the next two financial years, with three potentially listing in FY27.
Eligibility criteria for IPO include a minimum net worth of ₹300 crore, a capital adequacy ratio above 9%, and specific profit and equity return requirements.
The combined profit of RRBs in FY25 was ₹6,825 crore, lower than the previous year due to new pension and computer increment liabilities.
- Who
- The Ministry of Finance and three regional rural banks (Haryana Gramin Bank, Kerala Gramin Bank, Tamil Nadu Grama Bank)
- What
- Submission of draft IPO plans by the end of March
- When
- By the end of March, with plans to list at least five RRBs in the next two financial years
- Where
- India
- Why
- To raise fresh capital and meet eligibility criteria for listing
- RRBs Involved
- Haryana Gramin Bank, Kerala Gramin Bank, Tamil Nadu Grama Bank
- Deadline for IPO Plans
- End of March
- Government's IPO Listing Plan
- At least five RRBs in the next two financial years, three in FY27
- Shareholding Framework
- Centre: 50%, State Governments: 15%, Sponsor Banks: 35%
- Eligibility Criteria for IPO
- Minimum net worth of ₹300 crore, capital adequacy ratio above 9%, operating profit of ₹15 crore in three of the last five years, return on equity of 10% in three of five years, not under RBI's prompt corrective action
- Combined Profit of RRBs in FY25
- ₹6,825 crore
- Reason for Profit Moderation
- Rollout of pension scheme and computer increment liabilities