Himachal Pradesh Gramin Bank

What Himachal Pradesh Gramin Bank does

Himachal Pradesh Gramin Bank (HPGB) is a Regional Rural Bank (RRB) wholly owned by the Government of India and sponsored by Punjab National Bank, established on February 15, 2013 through the amalgamation of Himachal Gramin Bank, Mandi and Parvatiya Gramin Bank, Chamba under Section 21 of the RRB Act, 1976. The bank's Head Office is in Mandi, Himachal Pradesh, and it is chaired by Rajendra Singh. HPGB operates 266 branches and five regional offices (Chamba, Dharamshala, Mandi, Solan, Hamirpur) covering all 12 districts of Himachal Pradesh, including remote and high-altitude areas such as Kinnaur and Lahul-Spiti. Its mission is financial inclusion and provision of banking services to rural and unbanked populations, supplemented by Bank Mitra and Bank Sakhi business correspondent models.

HPGB's product portfolio spans deposit products (savings, current, term deposits with tenors from 7 days to 10 years), lending products (Kisan Credit Card at 7% with 3% prompt-payment subvention, agriculture term loans, MSME loans including GECL and PM SVANidhi, vehicle loans up to Rs. 100 lakh for cars, education loans up to Rs. 20 lakh under SARASWATI/PRATIBHA schemes, personal loans up to Rs. 10 lakh for salaried borrowers, and housing loans up to Rs. 75 lakh-plus), and government social security schemes (PMSBY, PMJJBY, APY, PM Kisan Samman Yojna). The technology stack consists of internet banking (retail and corporate), the HPGB M-Banking mobile application for Android and iOS, UPI on the NPCI platform, and NEFT/RTGS/IMPS electronic fund transfer systems, with WhatsApp Banking announced as a new channel. Security is supported by PCI DSS compliance on the corporate internet banking login and 128-bit SSL encryption.

HPGB's business model is a traditional spread-based rural banking franchise: in FY 2021-22, deposits stood at Rs. 7,271.75 crores (12.25% YoY growth) with a CASA ratio of 37.23%, and advances reached Rs. 2,804.26 crores (14.91% YoY growth), yielding total business of Rs. 10,076 crores. Revenue is generated through net interest income on advances, fee-based income from loan processing and service charges, and commissions from government scheme distribution. Distribution is anchored by the 266-branch physical network, with the bank employing approximately 948 staff and operating at Rs. 10.63 crores of business per employee and Rs. 37.88 crores per branch. Customer segments are predominantly rural and agricultural (small/marginal farmers, MSMEs, unbanked populations), supplemented by salaried government employees and students. Asset quality showed gross NPAs rising to 5.74% (from 5.35%) with net NPA at 1.60%, reflecting typical rural agricultural credit stress.

Name

Himachal Pradesh Gramin Bank

Legal name

Himachal Pradesh Gramin Bank

Website

https://hpgb.bank.in

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Ownership category

akta.pro rank

Product category

Rural Banking

NAICS

Depository Credit Intermediation (5221), Commercial Banking (522110)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Agricultural & Rural Development Banks (FSABAKAE)

Keywords

• Rural banking services
• Agricultural credit
• Financial inclusion
• Digital banking
• Government social security schemes

Headquarters

HQ city

Mandi

HQ country

India

HQ region

Asia

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Interest Income from Advances: Primary revenue stream from lending activities including agriculture loans (Kisan Credit Card at 7% up to Rs. 3 lakh), house loans, education loans, vehicle loans, personal loans, and MSME loans. Advances reached Rs. 2,804.26 crores in FY 2021-22 with 14.91% YoY growth.
2. Deposit Interest Payments: Traditional deposit mobilization generating CASA and term deposits. Deposits reached Rs. 7,271.75 crores in FY 2021-22 with 12.25% YoY growth. CASA ratio was 37.23% of total deposits.
3. Fee-Based Income: Service charges on loans, non-credit service charges, processing fees, and charges for various banking services including ATM/debit card services

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels6 records

Core offering

Himachal Pradesh Gramin Bank is a Regional Rural Bank sponsored by Punjab National Bank that provides basic banking facilities, deposit mobilization (savings, current, term deposits), and productive credit for agriculture, cottage industries, small industries, retail trade, dairy development, housing, education, transport, and consumer needs. It also delivers government social security schemes (PMSBY, PMJJBY, APY) and PM Kisan Samman Yojna payments, supported by digital channels including mobile banking, internet banking, UPI, and NEFT/RTGS/IMPS.

Product overview

Himachal Pradesh Gramin Bank is a Regional Rural Bank sponsored by Punjab National Bank offering a comprehensive suite of banking products and services. The bank operates 266 branches across 12 districts of Himachal Pradesh. Its digital banking portfolio includes Mobile Banking (Android/iOS apps), Internet Banking (Retail and Corporate platforms), UPI payments, WhatsApp Banking, and NEFT/RTGS/IMPS fund transfer services. The lending portfolio covers Personal Loans, Vehicle Loans (two-wheelers and cars), Agriculture Loans including Kisan Credit Cards, Education Loans (Saraswati and Pratibha schemes), House Loans, and MSME Loans. Deposit products include Savings Accounts, Current Accounts, and Term Deposits. The bank also participates in government social security schemes including PMSBY, PMJJBY, APY, and PM Kisan Samman Yojna.

Differentiator

Problem solved

Functional benefit

Products and services

• Mobile Banking App Mobile banking application for Android and iOS enabling customers to manage finances, check balances, transfer funds, pay bills, manage debit cards, open term deposits, and enroll in social security schemes.
• Internet Banking Online banking platform offering retail and corporate banking services with account management, fund transfers (intra-bank and inter-bank via NEFT/RTGS), transaction monitoring, and statement access for individuals, partnership firms, companies, HUF, trusts, and societies.
• UPI (Unified Payments Interface) Instant real-time payment system facilitating inter-bank fund transfers on mobile platform, regulated by Reserve Bank of India.
• WhatsApp Banking Banking services delivered through WhatsApp messaging platform for customer convenience and communication.
• Personal Loan Personal loan scheme for confirmed/permanent employees of Central/State Govt./PSUs, Defense Personnel, and professionally qualified doctors with annual income of Rs.4.00 Lakh and above. Loan amount ranges from Rs. 50,000 to Rs. 10 Lakh with repayment up to 60 months.
• Vehicle Loan Financing for two-wheelers (max Rs. 1 Lakh for scooters/motorcycles, max Rs. 10,000 for mopeds) and cars (max Rs. 100 Lakh or 25x monthly salary). Includes Kishan Vahan Yojna for farmers to purchase four-wheelers for self-conveyance.
• Agriculture Loan Comprehensive agricultural financing including Kisan Credit Card (KCC) scheme, term loans for plantation/horticulture, farm mechanization, dairy farming, poultry, and bee-keeping. Also covers Agri Clinic and Agri-Business Centers for agricultural graduates.
• Kisan Credit Card (KCC) Short-term credit facility for farmers meeting cultivation expenses, post-harvest costs, marketing loans, consumption requirements, and working capital for farm assets. Interest rate of 7% up to Rs. 3.00 Lakh for regular accounts with 3% prompt payment subvention.
• Education Loan - Saraswati Education loan scheme for graduation, post-graduation, professional courses (Engineering, Medical, Management, Agriculture), ICWA, CA, CFA, and studies abroad. Maximum Rs. 10 Lakh for studies in India, Rs. 20 Lakh for studies abroad.
• Education Loan - Pratibha Education loan for regular full-time degree/diploma courses at premium institutions. Finance up to Rs. 20 Lakh for studies in India at specified premium institutes. Co-obligation of parents/guardian as joint co-borrower with no collateral security required.
• House Loan Housing finance for construction, purchase, repairs, renovation, addition, or alteration of houses. Loans up to Rs. 75 Lakh require 20% margin; above Rs. 75 Lakh require 25% margin. Repayment period up to 25 years.
• MSME Loan Micro, Small and Medium Enterprise loans including implementation of Guaranteed Emergency Credit Line (GECL) Scheme and PM Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi) Scheme.
• Savings Account Basic savings bank account for individuals with banking facilities.
• Current Account Business/current account for transactions and day-to-day banking needs.
• Term Deposit Account (Fixed Deposit) Fixed deposit accounts with various tenors from 7 days to 10 years. Interest rates ranging from 3.25% to 6.60% for general public, with special rates for senior citizens and ex-servicemen.
• Social Security Schemes Participation in Pradhan Mantri Suraksha Bima Yojna (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY), and Atal Pension Yojna (APY). HPGB has highest share among banking system in Himachal Pradesh for these schemes.
• PM Kisan Samman Yojna Direct benefit transfer scheme for farmer welfare. HPGB processes payments under this government scheme.

Quantifiable outcome

• Total business crossed Rs. 10,000 crore milestone (12.98% growth)
• +4 more outcomes

Named customers5 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration8 records

Feature4 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Punjab National BankcoreStrategic or Co-development PartnerPNB is the sponsor bank for Himachal Pradesh Gramin Bank. HPGB came into existence through amalgamation of two RRBs (Himachal Gramin Bank, Mandi and Parvatiya Gramin Bank, Chamba) vide Government of India notification dated 15th February 2013. PNB provides administrative support and oversight through nominated directors on the board.
• National Payments Corporation of India (NPCI)coreTechnology or IntegrationNPCI developed and operates the UPI (Unified Payments Interface) platform which HPGB has implemented for its customers enabling instant real-time inter-bank fund transfers on mobile platform, regulated by RBI.
• Reserve Bank of India (RBI)coreOthersRBI is the regulatory authority for the bank. Bank is authorized to affect banking transactions as permitted under Section 5(b) of Banking Regulation Act, 1949. Banking Ombudsman at RBI Shimla handles customer grievances.
• NABARDcoreStrategic or Co-development PartnerNational Bank for Agriculture and Rural Development is represented on the Board of Directors. NABARD provides refinance support and development finance for agricultural and rural development activities.
• Department of Financial Services, Ministry of FinancecoreOthersGovernment of India ministry represented on the Board of Directors. DFS oversees implementation of government schemes including PM Kisan Samman Yojna, PMSBY, PMJJBY, APY, GECL, and PM SVANidhi.
• PFRDAcoreStrategic or Co-development PartnerPension Fund Regulatory and Development Authority for Atal Pension Yojna. HPGB has received awards from PFRDA for performance in APY enrollments and subscriber retention.
• DICGC (Deposit Insurance and Credit Guarantee Corporation)coreOthersDICGC provides insurance cover on deposits. HPGB displays DICGC logo and QR code linking to dicgc.org.in for customer awareness about deposit insurance.
• Jan Samarth PortalminorGTM or Marketing PartnerGovernment portal for credit-linked government schemes. HPGB displays Jan Samarth logo linking to jansamarth.in for education loan and other scheme access.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• State Bank of India: India's largest public-sector bank and former sponsor of one of the two predecessor RRBs that merged to form HPGB; operates the largest rural branch network in the country and competes with HPGB across deposits, advances, and social-security schemes.
• Punjab National Bank: Sponsor bank of HPGB and one of India's largest public-sector commercial banks; competes with HPGB in Himachal Pradesh for retail and agricultural banking while providing administrative and technical support - a clear parent-overlap incumbent.

Direct peers

• Madhya Pradesh Gramin Bank: State-level Regional Rural Bank formed through amalgamation of RRBs in Madhya Pradesh under the RRB Act, sharing HPGB's rural credit, deposit mobilization, and financial inclusion mandate in a parallel geography.
• Karnataka Gramin Bank: Karnataka-based RRB operating with the same RRB Act mandate and agriculture/MSME focus; serves as a directly comparable peer in terms of branch network depth, deposit mobilization, and government scheme distribution.
• Baroda Rajasthan Kshetriya Gramin Bank: Rajasthan-based RRB sponsored by Bank of Baroda with a comparable multi-district branch network, agriculture-led lending book, and government scheme distribution model akin to HPGB.
• Maharashtra Gramin Bank: Maharashtra Gramin Bank is a state-level Regional Rural Bank formed through amalgamation of multiple RRBs, delivering similar deposit and agricultural credit products with parallel financial-inclusion mandate.
• Uttar Pradesh Gramin Bank: Another large Indian Regional Rural Bank operating under the RRB Act, 1976 with a similar multi-district branch model, agricultural KCC focus, and government sponsorship structure - making it the closest scale and operating-model comparable to HPGB.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/hpgbank
• YouTubeyoutube.com/@hpgbank
• Facebookfacebook.com/hpgbank
• Instagraminstagram.com/hpgbank

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Himachal Pradesh Gramin Bank