Paytm Payments Bank, a solution for financial inclusion has been facing problems after problems since its inception. Even so, the company has seen its financial performance evolve.
As per the latest filings with MCA, the company that had earned Rs 2.47 crore worth of revenue in its first seven months from 22 August 2016 to 31 March 2017, grew the figure to Rs 729.1 crore in FY18.
About Rs 650 crore out of this revenue is earned by way of commission, brokerage, exchange, and earnings from wallet utilisation. All the deposits received by the bank are said to be invested in government securities.
The company incurred expenses of Rs 740 crore to earn this revenue in the latest fiscal. Henceforth, the losses amounted to Rs 20.7 crore for the period.
As compared to the Rs 30.7 crore loss figure in its initial seven months since incorporation in August 2016, the company has shown significant control in losses, even with the growth in scale.
As per a Mint report based on data accessed via Tofler, where the expenses were made isn’t clear as about Rs 660 crore of the expense is shown under the category of other expenditure.
These figures might have been better if the RBI didn’t ban the platform for adding new customers.
Looking at Airtel Payments Bank’s revenue of Rs 160 crore in FY18, and losses worth Rs 272 crore, the figures of Paytm look further impressive.
When it comes to total deposits Airtel already has the advantage over Paytm and as Airtel Payments Bank and Fino Payments Bank have the permission to add more customers unlike Paytm, the situation might change in FY19.
With Satish Kumar Gupta as the third and newest CEO of Paytm Payments Bank, it would be interesting to see how it fares up in FY19.