Paytm Bank Bags Fund Of Rs 122 Crore
Paytm Bank Bags Fund Of Rs 122 Crore

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.

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 diffic, Paytm Payments Bank to get off the ground even after a year of having been around as they struggle to get depositors.

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%.

 
Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading