As per the Paytm recent blog, the Paytm payment bank arm has shown profitability once again in the FY19-20. In FY19-20, Paytm payment bank has shown a profit of ~30 Crores as compared to ~20 Crores last year. The profitability has come on the back of acquisitions of users in smaller cities. Paytm payment bank this year has clocked a revenue of ~Rs.2100 Crores.
Some amazing stats from the payment bank in FY19-20.
1. Paytm has facilitated 486 Crores transactions from its platform.
2. Done a total of 4.6 Lakh Crores of transactions. This is approximately 2% of India’s GDP.
3. Total CASA base increased to 5.8 Crores.
4. The total deposit doubled to 1000 Crores.
Paytm bank has recently launched a facility for DBT (Direct benefit transfer), the government subsidy scheme to transfer funds directly to the bank account of needy people. So, all the users who are having Paytm Payment bank saving account now will able to get government subsidy directly in their Paytm account. This will boost the Paytm presence in rural India since, during COVID-19, lot of migrant workers are getting income under the MANREGA scheme.
Paytm is really doing good in the payment bank segment from the last 2 years and is expected to reduce the overall losses this year, though we don’t have the consolidated numbers available with us to give the exact amount of reduction in loss. With back to back profitability in payment bank arm, we can say Paytm is poised for a big leap in India’s digital payment segment.
The recent acquisition of the Raheja QBE General Insurance business will boost its revenue from the Insurance business in the coming years. To read more about the deal please click here
Paytm is acquiring general insurance business from Raheja QBE