Finance Ministry Sets March Deadline for 3 RRBs to Submit IPO Blueprints

As per Business Standard report, The Ministry of Finance has directed Haryana Gramin Bank, Kerala Gramin Bank and Tamil Nadu Grama Bank to prepare and submit draft initial public offering plans by the end of March.  

The draft IPO blueprints are to be routed through their respective sponsor banks and the Department of Financial Services, following a review meeting held by the DFS to assess listing readiness. Senior officials from the 3 banks and their sponsor institutions participated in the review. 

Listing Roadmap and Ownership Structure 

The capital planning committee and IPO sub-committee will finalise valuation and capital-raising methodologies, along with a comprehensive checklist of statutory requirements involving market and banking authorities. A consolidated draft proposal is expected to be prepared and submitted for vetting by the close of the current financial year.  

The Centre is targeting the listing of at least 5 regional rural banks over the next 2 financial years, with up to 3 potential offerings in FY27, following the consolidation of RRBs from 48 to 23 under the One State, One RRB initiative.  

At present, RRB shareholding stands at 50% with the central government, 15% with state governments, and 35% with sponsor banks. 

Financial Metrics of Identified Banks 

As per report, Haryana Gramin Bank, sponsored by Punjab National Bank, reported a net profit of ₹376.6 crore in FY25, with a capital adequacy ratio of 15.31% and net NPAs at zero. 

Tamil Nadu Grama Bank, backed by Indian Bank, posted a net profit of ₹367.39 crore in FY25 and zero net NPAs.  

Kerala Gramin Bank, sponsored by Canara Bank, recorded a net profit of ₹312.89 crore, CRAR of 13.93% and net NPAs maintained at zero, despite a GNPA ratio of 1.82%. 

Read More: SEBI Approves Fusion CX IPO Worth ₹1,000 Crores! 

Conclusion 

The move marks a key step in the government’s broader plan to deepen capital market participation by regional rural banks, leveraging their improved financial metrics and post-consolidation structure to support future growth and capital access. 

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