Paytm Payments Bank has shored up its capital with the infusion of Rs 122 crore, taking the total funds infused into the venture to Rs 400 crore. This additional funding in this round has come from any outside sources but from the parent company, One97 Communications and Paytm founder Vijay Shankar Sharma.
These and other details have been disclosed by the company in a filing with the RoC. It is quite clear that Sharma continues to be the majority stakeholder in the company. Of the Rs 122 crore, Vijay has invested Rs 60 crores. In the earlier investment of Rs 200 crore also Sharma had picked up a substantial part of the investment.
Paytm Payments Bank launched its operations in May this year. Users can deposit upti Rs 1 lakh and the Bank offers 4% interest rate on savings account as against Airtel Payments Bank, which gives 7.25% interest on deposits in savings accounts and India Post Payments Bank, which is providing 5.5% interest on deposits.
Paytm Payments Bank is also the first bank to offer cashbacks on deposits, such as cashbacks of Rs 250 on depositing Rs 25,000 into the bank account. It levies no charges on online transactions and doesnâ€™t have a minimum balance requirement. Paytm plans to open 31 branches and 3,000 customer service points in a year.
Until now, it has been a turnover of Rs 2 crore and has reported a loss of Rs 30 crors during the previous period of August 2016 to March 2017.
While on the subject of payment banks, in-principle licenses were issued to eleven entities and so far, only four are functional. These are India Post Payments Bank, Airtel Payments Bank, Fino Payments Bank and Paytm Payments Bank. The surprising aspect related to the functioning of these payments bank as revealed through a RTI report from RBI is that none of these banks have really been able to attract deposits from the public in all these months.
Of the Rs 236.45 crore that all these 4 banks got as deposits, Rs 224 crore has come into the Airtel Payments Bank.