Paytm Payments Bank incurred Rs. 30cr loss in 7 months
What's the story
In its regulatory filing to Registrar of Companies (RoC), Paytm Payments Bank informed that in the time period between August 2016 and March 31, 2017, it has incurred losses of Rs. 30.7 crore. The firm is, however, terming it as the operational cost instead of a bona fide loss, as it was incurred prior to the start of its operations in May. Here's more.
Paytm
Did it make any money?
During the same period, Paytm Payments Bank said, it has accrued revenue of Rs. 2.4 crore. According to those aware of the development, the firm is making serious investments to expand the payments banking business and it will hire more banking correspondents. The firm also has plans of opening new branches in the near future.
RBI
Who owns it?
The firm had kick-started its operations in May'17. It was among the 11, which had received an in-principle nod from the apex bank of India, RBI to set up limited banking operations. Paytm founder Vijay Shekhar Sharma holds 51% share in the company's banking arm, while the rest is owned by Alibaba backed One97 Communications.
Sharma
What is the plan?
In a BS interview, Sharma informed that the firm is planning on spreading out to over 31 branches and will have 3,000 customer service points before the year-end. He said, "In the first phase, we are targeting as many as 200 million wallets, current and savings accounts. While normal banks target savings and current accounts, we will target the wallets as well."
Goals
What to expect in the future?
The firm has an ambitious goal of opening 500 million accounts by 2020. Recently, it was on the lookout for full-service banks to partner with. "Anything which we cannot offer, we will be partnering with the banks. Whether it's going to be a loan, or a credit card, or a term deposit, and other services," said Renu Satti, CEO of Paytm Payments Bank.