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India Post emerged the largest Loss Making PSU higher than BSNL and AirIndia

For a universal service and Indian postal service (Bharatiya Daak), there will be no losses because more post offices in the country than the banks of commercial banks all together. Like all other state entities, India Post is also plagued by high operating costs and employee compensation.

The growing gap between India's Post's revenue and expenditure reached Rs 15,000 crore in Financial year 2019, making it the largest financial burden for the government, even more than BSNL and Air India, according to a report by the Financial express.
The BSNL and Air India already reported losses Rs 8,000 crore and Rs 5,340 crore respectively, in Financial year 2018.

Like all other state entities, India Post is also plagued by high operating costs and employee compensation. Employee salaries have increased due to the implementation of numerous awards from the central payment panel. However, revenue from postal services continued to decline.

In Financial Year 2019, the allocation and payment costs for the bank is equal to Rs 16,620 crores, compared to Rs 18,000 crores of income. The Public Sector Unit has estimated that the cost of wages and pensions will be close to Rs 17,451 crore and Rs 10,271 crore respectively, in FY 2020 against the expected income of Rs 19,203 crore.


The company tried to get out of this financial problem, but failed due to a mismatch between product costs and less expensive alternatives to traditional mail services. The sources said India Post may ask to delve into e-commerce and other value-added services to capitalize on its workforce of 4.33 lakh and the network of post offices 1.56 lakh.

"For a universal service and postal service, there will be no losses because more post offices in the country than the banks of commercial banks all together," an official said. The body spends Rs 12.15 in each of their Post card, but only recovered 50 paise or 4 percent of the cost. The same applies to the parcel service, book publishing, quick publication and registration.

The PSU dabbled in other services, such as selling financial products, selling gold sovereign bonds, mutual funds and insurance, passport delivery, train tickets and other similar services. But they didn't help much and represented only the crore of Rs 844 in 2018.


India Post relies on national savings schemes and savings certificates for most of its revenue. They accounted for 60% of their income of Rs 11,511 crores in FY 2017. Experts say it can be a channel only for cash on delivery for e-commerce companies due to its presence in the darkest corners of the country. However, the lack of warehouse facilities also hampers this route for Indian mail.

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