In their very first year of Launch Paytm Bank has faced loss of Over Rs 30 crore, Paytm reported. It started operations from the month of May this year. As per the documents, the company had an overall revenue of close to Rs 2.5 crore during the period under review.
The Company has said it will open 31 branches and about 3,000 customer service points in the first year. As per rules, payments banks cannot lend to consumers. Paytm is hence in talks with banks cannot lend to consumers. Paytm is hence in talks with banks and financial service providers to offer those products to its payment bank account holders. It is looking at offering retail & SME loans and consumers credits currently.
A Paytm spokesperson refused to comment n the financials of the payments bank.
Earlier last month, the bank received a capital infusion of Rs. 60 crore taking the total amount of capital infused in the bank to Rs 278 crore.
Paytm, which is run by One97 communications, create two seperate entities, Paytm E-commerce and Paytm Payments Bank. The wallet business of the company was transferred to the newly created payments bank entity to meet Reserve Bank of India’s guidelines. The bank has started its operations from Noida already offering an interest rate of 4%. Founder VIjay Shekhar sharma 51% stake in the payment bank while rest is owned by One97 communications and its subsidiaries. Sharma is also the chairperson of payments bank.
Other payments bank operating in the country include, Airtel, India Post, Fino Payments Bank, Aditya Birla Nuvo and Reliance Industries are expected to start their payments bank soon.