Paytm Payments Bank, which has posted Rs 19 crore in profit for FY19, is looking to offer mutual fund and insurance products by June this year to drive further growth.
Paytm Payments Bank, which has posted Rs 19 crore in profit for FY19, is looking to offer mutual fund and insurance products by June this year to drive further growth, multiple sources at the company told Financial Express Online.
“From the coming month (June) we will be offering mutual funds and insurance as an added revenue stream for our business,” said one source.
Paytm Payments Bank on Thursday announced profitability for its first year itself at Rs 19 crore along with claiming more than 19 per cent share in mobile banking transactions as of March 2019 and processing digital transactions worth more than Rs 3 lakh crore on an annualised basis, PTI reported.
The payments bank’s current monthly transactions “from existing accounts of 45 million, the current monthly transactions stands at close to 180 million,” said source even as it is looking to “increase the number of accounts to around 90 million from current 45 million following.”
Out of 45 million, Paytm Payments Bank’s number of active customers currently is 15 million who use its services at least once in the six-month period, according to sources.
Moreover, with respect to deposits in Paytm Payments Bank, the amount has grown from Rs 194 crore in May 2018 to Rs 500 crore in April this year, sources added. Its revenue for FY19 stood at Rs 1,500 crore.
The net loss posted by the payments bank for FY18 was Rs 20.7 crore, PTI cited regulatory documents. Paytm’s founder Vijay Shekhar Sharma has a majority stake of 51 per cent in Paytm Payments Bank and remaining is held by Paytm’s parent company One97 Communications.
The positive financials for the payments bank comes amid the recent turmoil of more than Rs 10 crore alleged fraud that was unearthed recently as per an audit by consultancy firm EY.
Moreover, its e-commerce venture Paytm Mall “is not working anymore, with market share declining from 5.6 per cent in 2017 to 3.4 per cent in 2018,” said a Forrester report recently.
In its current form, Paytm Mall can’t survive in the long term against Amazon and Flipkart, even after getting a new round of funding, said the report titled State of the Online Retail Market in India in 2019.