Paytm Payments Bank gets $32.4m fresh investments
Bengaluru – Feb 04, 2017. RedNewswire/-
Paytm Payments Bank has received fresh investments of $32.4M from its promoter and founder Vijay Shekhar Sharma besides two other entities – One97 Communications Ltd and One97 Communications India Ltd.
Paytm Payments Bank got a final approval from the Reserve Bank of India last month to run and operate payments bank in the country. Vijay Shekhar Sharma, the promoter and founder of Paytm hold about 51 per cent in Paytm Payments Bank. One97 Communications holds 49 per cent stake.
Mr. Sharma sold one per cent of his shares in One97 Communications to its shareholders for about Rs 325 crore. The amount raised through the stake sale was slated to be used for Paytm’s payments bank operations, in which Sharma holds 51 per cent stake.
Paytm Payment Bank Limited plans to start operations and begin a pan India roll out its payments bank by early April this year. Paytm was among 11 other recipients including Airtel and Fino Paytech, to have received RBI’s in-principle payments bank licences.
The payment bank plans to sell products such as loans, wealth management and insurance to drive revenues. Payments banks are not allowed to lend themselves, but many are banking on cross-selling banking products through partnerships.
Paytm Payments Bank plans to take leverage from its wallet business that will soon get merged with the banking entity. It plans to open 200 million accounts, across current and savings accounts in the first year of operations.