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Your creativity can become the face of India Post!

 Your creativity can become the face of India Post!

🎨✨ Your creativity can become the face of India Post!

Participate in the India Post Mascot Design Contest and create a unique mascot that reflects the spirit of trust, service, innovation, and nationwide connectivity. Stand a chance to win exciting cash prizes and national recognition!

🗓 Entries Open: 15 July 2026

🗓 Last Date: 15 August 2026

📍 Submit your design through MyGov and let your imagination deliver the next iconic identity of India Post!

For more details contact: - mktdiv.dop@gmail.com.

#IndiaPost #MyGovIndia #MascotDesignContest #DakSewaJanSewa

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Understanding Income to Cost Ratio (ICR) of a Branch Post Office

Understanding Income to Cost Ratio (ICR)  of a Branch Post Office 

 

 

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Understanding the Income-to-Cost Ratio (ICR) of a Branch Post Office

 Understanding the Income-to-Cost Ratio (ICR) of a Branch Post Office

 Understanding the Income-to-Cost Ratio (ICR) of a Branch Post Office

For the growth, sustainability, and financial strength of India Post, every Branch Post Office (BO) is expected to maintain a minimum Income-to-Cost Ratio (ICR) of 33.33%.

But what exactly is the Income-to-Cost Ratio, and how is it calculated?

This guide explains the concept in a simple and structured manner with practical examples.

---

What is the Income-to-Cost Ratio (ICR)?

The Income-to-Cost Ratio (ICR) indicates how much income a Branch Office generates compared to its operating expenses.

Formula

Income-to-Cost Ratio (%) = (Total Monthly Income ÷ Total Monthly Cost) × 100

Example

• Total Monthly Income = ₹10,563.36
• Total Monthly Cost = ₹44,306.44

ICR = (₹10,563.36 ÷ ₹44,306.44) × 100 = 23.84% (approximately)

Since the required benchmark is 33.33%, this Branch Office needs to improve its revenue generation.

---

Sources of Branch Office Income

The income of a Branch Office is calculated from various postal products and services.

1. Stamp and Stationery Sales

When stamps and stationery are sold, the entire sale value is not treated as income.

Calculation Method

• 40% (2/5) of the total sales value is taken as revenue.
• An additional 20% of that revenue amount is also added.

Example

• Total Stamp & Stationery Sales = ₹128.75

Step 1:

40% of ₹128.75

= ₹51.50

Step 2:

20% of ₹51.50

= ₹10.30

Total Revenue

₹51.50 + ₹10.30 = ₹61.80

Key Takeaway

Higher stamp and stationery sales directly increase Branch Office income.

---

2. Money Order Revenue

Revenue is calculated from the commission earned on Money Orders.

Money Orders Issued

Revenue = 24% of commission earned

Example

• Commission Earned = ₹192.50

Revenue = 24% × ₹192.50

= ₹46.20

---

Money Orders Paid

Revenue = 38% of commission earned

Example

• Commission Earned = ₹927.50

Revenue = 38% × ₹927.50

= ₹352.45

---

Total Money Order Revenue

₹46.20 + ₹352.45

= ₹398.65

Key Takeaway

---

3. Indian Postal Orders (IPO)

For Indian Postal Orders sold:eographic Reference

• 40% (2/5) of the commission earned is taken as revenue.

Example

If no IPOs are sold during the period:

Revenue = ₹0

---

4. Post Office Savings Bank (POSB) – The Largest Income Contributor

POSB accounts contribute the largest share of Branch Office income.

Revenue from Live POSB Accounts

Each live POSB account contributes:Interest Rate Updates

₹67.97 per year

Example

• Live POSB Accounts = 1,733

Revenue = ₹9,816.00

---

Revenue from Silent POSB Accounts

Each silent POSB account contributes:

₹11.05 per year

Example

• Silent POSB Accounts = 198

Revenue = ₹182.33Banking

---

Total POSB Revenue

₹9,816.00 + ₹182.33

= ₹9,998.33

Key Takeaway

POSB contributes the largest portion of Branch Office income.

To improve ICR:

• Open more POSB accounts.
• Reactivate silent accounts.
• Encourage customers to use savings bank services regularly.

---

5. Other Agency Functions

An additional revenue equal to 1% from other agency functions is also considered.

Example

Revenue = ₹104.59

---

Total Monthly Income Calculation

Income Source	Revenue (₹)
Stamp & Stationery	61.80
Money Orders	398.65
Indian Postal Orders	0.00
POSB Accounts	9,998.33
Other Agency Functions	104.59
Total Income	10,563.36

---

Monthly Operating Cost

Every Branch Office has fixed monthly expenses.

Expense Head	Amount (₹)
BPM Salary	28,250.00
ABPM Salary	15,800.00
Stationery Charges	250.00
Printing & Audit Charges	6.44
Total Cost	44,306.44

---

Income-to-Cost Ratio Analysis

Particulars	Amount (₹)
Total Monthly Income	10,563.36
Total Monthly Cost	44,306.44
Income-to-Cost Ratio	23.84%

Expected Benchmark

Minimum ICR Required = 33.33%

Current Position

The Branch Office is achieving only 23.84%, which is below the departmental benchmark.

---

How to Improve the Income-to-Cost Ratio?

To achieve and exceed the target of 33.33%, Branch Offices should focus on:

✓ Increasing POSB Business

• Open new POSB accounts.
• Reactivate silent accounts.
• Promote recurring deposits and savings products.

✓ Boosting Stamp & Stationery Sales

• Encourage customers to purchase stamps and stationery from the Branch Office.

✓ Increasing Money Order Transactions

• Promote Money Order services where applicable.

✓ Expanding Postal Transactions

• Encourage greater use of postal and agency services.

✓ Improving Customer Outreach

• Conduct awareness campaigns and customer visits.
• Identify potential customers for postal savings products.

---

Conclusion

When reviewing an Income-to-Cost Ratio statement, do not focus only on the final percentage. Instead, analyze the income sources contributing to the revenue.

The example clearly shows that POSB accounts contribute the largest share of Branch Office income, making them the most effective tool for improving ICR.

More POSB accounts, more stamp sales, more money order business, and more postal transactions will directly improve the Income-to-Cost Ratio and strengthen the financial sustainability of every Branch Post Office.Interest Rate Updates

A stronger Branch Office means a stronger India Post. 🇮🇳📮

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India Post Records Highest -Ever First Quarter Revenue of Over ₹4,000 Crores, Registering 22% Year-on-Year Growth: Union Minister of Communications Shri Jyotiraditya M. Scindia

 India Post Records Highest -Ever First Quarter Revenue of Over ₹4,000 Crores, Registering 22% Year-on-Year Growth: Union Minister of Communications Shri Jyotiraditya M. Scindia

 

Ministry of Communications

India Post Records Highest -Ever First Quarter Revenue of Over ₹4,000 Crores, Registering 22% Year-on-Year Growth: Union Minister of Communications Shri Jyotiraditya M. Scindia

Historic growth underscores India Post's future-ready transformation under the vision of Prime Minister Shri Narendra Modi

Posted On: 14 JUL 2026 6:19PM by PIB Delhi

The Department of Posts convened its Quarterly Business Review Meeting today, for Q1 of FY 2026–27 at Vigyan Bhawan, New Delhi, chaired by Union Minister of Communications and DoNER, Shri Jyotiraditya M. Scindia, in the esteemed presence of the Minister of State for Communications, Dr. Chandra Sekhar Pemmasani. The strategic gathering brought together Heads of Postal Circles from across the country to review the Department's business performance during the first quarter and deliberate on India Post's evolving roadmap for business transformation.

Reviewing the Department's performance, Union Minister Shri Scindia noted that India Post has commenced FY 2026–27 on a positive trajectory. Against an ambitious annual revenue target of ₹19,803 crore, the Department generated ₹4,009 crore during the first quarter, registering 22% year-on-year growth over the corresponding quarter of the previous FY 2025–26 and achieving 81% of the Q1 target.

Congratulating all the members of the India Post family for their dedication and unwavering commitment, the Union Minister acknowledged the relentless efforts of employees across the country in strengthening the Department's service delivery and contributing to its continued growth. The milestone reflects the Department's sustained efforts towards modernization, business transformation and customer-centric service delivery under the vision of Prime Minister Shri Narendra Modi for a digitally empowered and future-ready postal network.

The Union Minister reviewed the performance of all 6 Business Verticals—Mails, Parcels, Postal Life Insurance/Rural Postal Life Insurance (PLI/RPLI), Post Office Savings Bank (POSB), International Relations & Global Business (IR&GB), and Citizen Centric Services (CCS). While appreciating the encouraging overall performance, he highlighted the following key achievements and directed the Department to build upon the best practices demonstrated by high-performing Circles:

• Among the business verticals, Citizen Centric Services (CCS) recorded the highest year-on-year growth of 86%, followed by Parcel (50%), Mails (42%), International Relations & Global Business (IR&GB) (34%), Postal Life Insurance/Rural Postal Life Insurance (PLI/RPLI) (20%), and Post Office Savings Bank (POSB) (10%), reflecting broad-based growth across the Department's business portfolio.

India Post achieved revenue of ₹4,009 crore during Q1 FY 2026–27 against the quarterly target of ₹4,951 crore, registering 81% achievement and 22% year-on-year growth over Q1 FY 2025–26. Andhra Pradesh, Chhattisgarh and West Bengal emerged as the top three performing Postal Circles overall. 

The best-performing Circles across the business verticals and their percentage achievements against targets were:ail & Messaging

• Citizen Centric Services: West Bengal (107%), Uttar Pradesh (106%).
• Parcel: Bihar (121%), Tamil Nadu (115%)
• Mail: Andhra Pradesh (106%).
• PLI/RPLI: West Bengal (97%), Jammu & Kashmir (96%).
• POSB: Chhattisgarh (124%), Andhra Pradesh (110%) and Jharkhand (107%).
• IR&GB: Kerala (83%), Rajasthan (81%).

The Union Minister also reviewed operational efficiency across the postal network and noted the significant year-on-year improvement in the activation of Branch Post Offices (BOs). During Q1 FY 2026–27, the number of BOs reporting Nil Business Transactions declined by over 92% in POSB, 97% in PLI/RPLI, and 99% in Speed Post & Parcel compared to the corresponding period of the previous FY. Appreciating the remarkable improvement in field-level business mobilisation, Shri Scindia directed all Postal Circles to sustain the momentum through focused monitoring, customer outreach and enhanced business generation at every Branch Post Office.

Further, reviewing the Department's financial sustainability, the Union Minister noted that the Expenditure Coverage Ratio (ECR) improved from 28% to 32% (including pension) and from 41% to 47% (excluding pension) over Q1 FY 2025–26, demonstrating continued improvement in operational efficiency and financial performance. He appreciated the strong performance of Delhi, Telangana and Chhattisgarh in improving ECR and directed all Circles to further strengthen revenue generation while maintaining expenditure discipline.ife Insurance

Union Minister of Communications Shri. Jyotiraditya M. Scindia also commended the best-performing Postal Circles across various business verticals and encouraged all Circles to adopt successful business models through peer learning initiatives and suggested a cluster-based approach by grouping States into three clusters, with each cluster focusing on a specific category of priority areas to enable targeted interventions, knowledge sharing and improved outcomes. While appreciating the progress achieved during the first quarter, the Union Minister observed that the Parcel, Mail and IR&GB business verticals require focused interventions during the remaining quarters. He directed the concerned Circles to intensify customer acquisition, strengthen engagement with corporate and institutional customers, expand strategic partnerships, and improve execution through regular monitoring and timely corrective measures. He stressed that monthly performance reviews, data-driven decision-making, greater accountability and stronger field-level execution would be critical for achieving the Department's ambitious business targets for FY 2026–27.

The Minister of State for Communications Dr. Chandra Sekhar Pemmasani appreciated the significant improvement in the Department's business performance, attributing it to regular reviews, systematic monitoring and the commitment of Postal employees across the country. He observed that the strong growth reflected the transformative impact of focused leadership, accountability and collective effort. Urging all Postal Circles to sustain the momentum through disciplined execution, teamwork and continuous monitoring, he stressed that consistent performance by every Circle would be key to achieving the Department's ambitious revenue targets while further strengthening India Post's service delivery, public outreach and institutional transformation.Banco Postal rates

 

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