Thu. Mar 28th, 2024
Paytm

Paytm Payments Bank, which is the banking arm of online payments startup Paytm, has reported a loss of ₹30 crore, and turnover of about ₹2 crore. The financial data is for the period of August 2016 to March 2017.

It is noteworthy that while the company was formed last year after it was spun-off from the parent firm, it started operations a few months ago this year.

As per the company’s financial documents, it saw income of around ₹2.4 crore while the expenditure stood at ₹33 crore. The company’s authorised capital was ₹400 crore at the time of filing this report.

Last month, Paytm Payments Bank received additional funding of ₹60 crore from its parent company One97 Communications and Vijay Sharma. While Vijay Sharma invested about ₹30 crore, One97 Communications had put in about ₹23 crore and rest of the money came from One97 Communications India.

At the time of forming this new venture, Vijay Sharma — founder of the company, had invested about ₹220 crore in the payments bank along with the parent company. With this, Vijay Sharma ended up owning a majority stake in the bank, as required by the RBI’s directive.

Payments banks are emerging as a new phenomenon in India’s financial services and banking space. The account holder in such banking service provider is allowed to open accounts with a deposit limit of up to ₹1 lakh.

Paytm Payments Bank offers 4 percent interest on savings accounts, and supports all the online transactions including NEFT, RTGS and IMPS. It is also issuing RuPay debit cards to the customers.

By Jeet