In this paper, we present a system towards Indian postal automation based on the recognition of pin-code and city name of the postal document. In the proposed system, at first, non-text blocks (postal stamp, postal seal etc.) are detected and Destination Address Block (DAB) is identified from the document. Next, lines and words of the DAB are segmented. Since India is a multi-lingual and multi-script country, the address part may be written by combination of two scripts. To identify the script by which a word is written, we propose a water reservoir based technique. It is very difficult to identify the script by which the pin-code portion is written. So we have used two-stage artificial Neural Network (NN) based general classifiers for the recognition of pin-code digits written in English/Bangla. For recognition of city names we propose an NSHP-HMM (Non-Symmetric Half Plane-Hidden Markov Model) based technique. At present, the accuracy of the digit recognition module is 93.14% while that of city name recognition scheme is about 86.44%.