Paytm Payments Bank reports profit in first full year of operations
today May 23, 2019
Paytm’s Payments Bank has become profitable in its first full year of operations with Rs 20 crore ($3 million) profit out of a net revenue of Rs 1,500 crore.
Paytm, which runs online fashion and lifestyle portal Paytm Mall, has recorded its first year of profit for its Payments Bank, the business’ managing director and CEO Satish K Gupta told the Times of India. The business has not yet published its entire audited financials for the 2019 fiscal year but it had reported a loss of Rs 20 crore and revenue of Rs 720 crore in the 2018 fiscal year.
Gupta also shared that deposits in the bank remain at around Rs 500 crore but that this is similar to the bank’s competition. Paytm Payments Bank, which is based in Noida, reported that the majority of its earnings resulted from investing deposits in government treasuries and fixed deposits which usually generate between six and 6.5 percent interest, according to Gupta.
The business also generates income from payment facilitation from its savings accounts and for e-wallet holders. Paytm moved its e-wallet services to its Payments Bank to comply with Reserve Bank of India regulations. The Payments Bank will start to sell more services including insurance and mutual funds from next month, Gupta said.
The Payments Bank also recently tied up with the international payments service Visa and will be able to issue Visa cards to customers moving forward. Paytm is also working on bringing more unorganised businesses onboard for digital payments including local stores selling fast moving consumer goods.
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