proposed Post Bank in India

 Reserve Bank of India governor  has backed the postal department's demand to set up a bank
 RBI governor, who is known for his candid comments, suggested that the 'Post Bank' could be given a limited banking licence that will be able to raise deposits and offer payment and remittance services. 

There will, however, be restrictions on investments and the entire amount would be have to be parked in government securities.

"The proposed Post Bank could start as a payment bank, making use of post office outlets to raise deposits and make payments" .

The suggestion came in the wake of a statement that RBI, while being cautious with new players, can be a little more flexible in allowing players to set up a small bank or to operate in only one segment of banking business. 
"Such differentiated licenses with restrictions on the geographical reach or the products offered by a new bank can generate more organizational variety and efficiency. Small banks tend to be better at catering to local needs, including needs of small and medium businesses," the governor said, adding that consultations will be conducted with stakeholders on the issue.
A payments bank model will help it tap into the post offices' extensive reach that goes beyond what even State Bank of India can offer. Compared to SBI's over 15,000 branches, there are over 1.5 lakh post offices across the country.

Plan of PNB to split it's stock in the ratio 1:5

Punjab National Bank (PNB) has said its plans to split its stock in ratio of 1:5 which would mean that the face value of its shares would be Rs 2 as against Rs 10 now making it more affordable to retail investors. The board of government owned bank also approved plans to raise equities either by way of private placement to institutional investors or through a follow-on issue or through a rights issue.

This will make PNB first government owned bank to announce a stock split. Among private banks, ICICI Bank had recently announced five for one stock split while other banks like HDFC Bank has split its stock in ratio of five for one and Kotak Mahindra Bank is two for one.

The board of PNB has also approved allotment shares to employees under employees stock purchase scheme (ESPS) or any other similar scheme. State Bank of India is the only other government owned banks to have offered its employees ESPS. In May 2014, SBI raised over Rs 800 crore by offering shares to employees at Rs 1565 per share.

The board of PNB has approved plans to raise Basel III compliant Tier-I Capital bonds. The shares of PNB closed at Rs 985, up 92% over previous closed at the Bombay Stock Exchange. All the board approvals are subject to a nod from Reserve Bank of India and government of India, the bank said ain a notice to the exchange.This will make PNB first government owned bank to announce a stock split. Among private banks, ICICI Bank had recently announced five for one stock split while other banks like HDFC Bank has split its stock in ratio of five for one and Kotak Mahindra Bank is two for one.