The Paytm Payments Bank was founded as a separate entity in November 2017. In this, the founder of Paytm holds a 51% share. One97 Communications and other subsidiaries of its own 39% and 10% shares respectively. Paytm is currently the largest digital wallet of our country and it increased its marketing and advertisement spending to Rs 34 crore in FY 19.
The Past Performances Of The Company
Paytm Payments Bank was established with the motive of targeting people with no or zero professional financial assistance. It received its approval from the RBI in 2015 and has gained a lot of attention being the first in the competition to gain a banking licence.
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The company spent Rs 34 crores this year which is nearly a 50% jump compared to its Rs 17 Crore in the last year. The Company since its inception has reported its revenue in quite decent figures. Its revenue for Financial Year 2018-19 was Rs 1,668 crores. It is reportedly a 131% jump from the last financial year.
Plus Paytm Payments Bank has reported a net profit of Rs 19 crore during the same fiscal year. It is already a 192% improvement from last year as there was a net loss of Rs 20 crore.
The Other Advantage For Money Income
Additionally, the Payments bank entity also inculcates Paytm’s e-wallet business and it held deposits up to Rs 1,700 crore in the financial year 2018-19.
The Advertising Agenda
Paytm has always been a big name in sports and television. The company has been a part of the Indian Premier League for the last two years. It has had its name in the Umpire sponsor area. Cricket has always proved to be an independent media opportunity for the brand. Paytm gained its gravitas by spending Rs 34 crore this year solely on advertising and marketing.
New Developments For Paytm Payments Bank Brand
The recent reports state that the company is planning to transform its Payments Bank into a Small Finance Bank. They believe it will be more profitable and fruitful for the society and it can help them grow. Paytm’s CEO Vijay Shekhar Sharma has said that Paytm Payments Bank will approach the government for a licence. This licence will allow the Payments Bank to lend finances to customers using technology-enabled low-cost operations.
As a payments bank, Paytm can now accept deposits up to Rs 1 lakh per customer in a savings or current account.
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A report by the Ministry of Electronics and Information Technology states that Paytm Payments Bank led the rankings in the number of digital transactions in the month of July.
Paytm Payments Bank is a revolutionary step towards digitizing everything that is connected with our lives but with digitization comes insecurity. Can the new business model instil a sense of security in people’s mind?