Money & Banking

Paytm Payments Bank gets Rs 218 cr fresh investments

Venkatesan R | | Updated on: Feb 03, 2017

Paytm Payments Bank Ltd, which got a final approval from the Reserve Bank of India last month to run and operate payments bank in the country, has received fresh investments worth Rs 218 crore from its promoter and founder Vijay Shekhar Sharma besides two other entities --One97 Communications Ltd and One97 Communications India Ltd. Sharma is also the promoter of these two companies and hold about 51 per cent in Paytm Payments Bank. One97 Communications holds 49 per cent stake.

As per the documents made available by Tofler, a business research platform for all registered companies in Indian with access to Registrar of Companies (RoC), Paytm Payments Bank in a Board meeting held on January 12 had approved for the allotment of fresh equity shares worth Rs 218 crore on a rights basis.

Meanwhile, Sharma has also raised about Rs 325 crore, to be invested in payment bank, by selling his one per cent stake in One97 Communications Ltd to another shareholder of the company. According to RoC documents, Chinese ecommerce giant Alibaba and its sister concern Alipay own about 41 per cent stake in One97 Communications Ltd, which has also infused fresh funds in the banking entity thus leading to an indirect involvement of the Chinese firm.

Paytm Payment Bank Limited plans to start operations and begin a pan India roll out its payments bank by early April this year. Paytm was among 11 other recipients including Airtel and Fino Paytech, to have received RBI’s in-principle payments bank licences.

Paytm Payments Bank plans to take leverage from its wallet business that will soon get merged with the banking entity. It plans to open 200 million accounts, across current and savings accounts in the first year of operations, Sharma had told media some time ago. The bank plans to sell products such as loans, wealth management and insurance to drive revenues. Payments banks are not allowed to lend themselves, but many are banking on cross-selling banking products through partnerships.

Published on January 12, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you