Money & Banking

Paytm Payments Bank posts Rs 30.7 cr loss during Aug'16-March 2017

Priyanka Pani Mumbai Oct 4 | Updated on January 08, 2018 Published on October 03, 2017

Paytm Payments Bank, a newly formed payment bank, has posted losses worth Rs 30.7 crore between August 2016 and March 31, 2017, as per its filings with the Registrar of Companies. Vijay Shekhar Sharma, its founder, owns 51 per cent stake and the rest is held by Sharma's company One97 Communincation, in which Japanese Internet giant SoftBank and China's Alibaba are majority shareholders

Business Line assessed the documents on business research platform Tofler. The bank's revenues were pegged at Rs 2.5 crore, as per the filings.

Paytm Payments Bank, a spun off entity of mobile wallet and ecommerce platform Paytm, launched its operations in May this year after getting a final RBI approval early this year.

As per RBI guidelines, payment banks can only take deposits and can't lend directly but through third party NBFCs. This makes the banks difficult to earn profits.

IndiaPost, Fino Payment Bank, Airtel are the other three banks of the 11 entities, which got licence, to have launched operations.

Recently, Ashok Pal Singh, CEO of India Post Payment Banks, told Business Line that the banks would take atleast about 4-5 years to post profits

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Published on October 03, 2017
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