Paytm’s bank gets Rs 122cr in fresh funds

Mumbai:

Paytm Payments Bank

has received another Rs 122 crore in fresh funds, taking its total capital allocation to Rs 400 crore, according to filings made with the Registrar of Companies. Paytm founder and CEO

Vijay Shekhar Sharma

, who holds the payments bank licence, has put in the amount along with

One97 Communications

and

One97 India Communications

, the regulatory filings said.

While Sharma pumped in Rs 62 crore personally, the rest of the amount has been infused by the two entities. As many as 121,990,000 equity shares were allotted to existing shareholders, the filing stated.

India has three other payments banks besides the one operated by Paytm — Fino Payments, Airtel Payments Bank and India Post Payments Bank. However, all of them have found it difficult to get off the ground even after a year of having been around as they struggle to get depositors.

Paytm Payments Bank said recently it has appointed an ex-ICICI Bank executive Sudhanshu Jain as its CFO. At the time, it said that it is set to add another 10,000 personnel as it gets ready with more than 1,00,000 banking outlets to aggressively reach out to more customers for KYC work and bank account opening. “We will also be investing $500 million in KYC operations and customer acquisition. This is in line with our goal to bring half a billion customers to the mainstream economy over the next three years,” a statement from Paytm said.

Paytm Payments Bank reported a loss of over Rs 30 crore at the end of financial year 2017, with an overall revenue of close to Rs 2.5 crore. According to RBI rules, payments banks cannot lend to consumers, which is why Paytm is in talks with banks and financial service providers to offer products to service retail & SME loans, and consumer credits.

Paytm, which is run by One97 Communications, created two separate entities — Paytm E-Commerce and Paytm Payments Bank. The e-wallet business of the company was transferred to the newly created payments bank entity to meet RBI guidelines. The bank offers an interest rate of 4%.


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