Paytm Payments Bank has reported a total loss of Rs 30.7 crore for the period of seven months ending March 31, 2017, according to the company’s filing with the Registrar of Companies (RoC).
Paytm Payments Bank has reported a total loss of Rs 30.7 crore for the period of seven months ending March 31, 2017, according to the company’s filing with the Registrar of Companies (RoC). The Vijay Shekhar Sharma-promoted payments bank reported a total income of Rs 2.4 crore and expenses of Rs 33.2 crore.
In its audited results, the company has said that it proposes to set up 31 branches, 33 controlling offices and 3,000 access points by March 31, 2018. It should be noted that in May this year, Renu Satti was appointed CEO of the payments bank business. Prior to Satti, Shinjini Kumar was responsible for the business.
Last month, the company claimed that about 10 million people have signed up for bank accounts during the beta launch of Paytm Payments Bank.
One97 Communications, which also runs a separate mobile wallet business under Paytm Wallet, claims to have 220 million wallet users until May 2017. Users who would like to migrate to the payments bank would have to fill KYC requirements to become account holders at Paytm Payments Bank.
In 2016, One97 Communications was spun off into two separate entities — Paytm E-commerce and Paytm Payments Bank. The payments bank business, which was rolled out in May 23 this year, was the third entrant in the space following the launch of Airtel Payments Bank and India Post Payments Bank. Among the three payments banks, Paytm offers the lowest annual interest rate of 4% on savings accounts, against Airtel’s 7.25% and India Post’s 5.5%.
According to RBI guidelines, payments banks can accept deposits up to Rs 1 lakh and can offer debit cards and financial products, like mutual funds and insurance, via tie-ups with other banks. Sharma holds 51% stake in Paytm Payments Bank and the remaining stake in the company is owned by One97 Communications, an Alibaba and SoftBank-backed venture.
In September, Paytm Payments Bank raised $9.3 million (Rs60 crore) from One97 Communications founder Sharma and other existing investors, according to RoC filings. At the time of its launch in May 2017, the payments bank received an initial investment of $34.2 million (Rs 220 crore), with Sharma emerging as its majority shareholder.