APB is betting on the payment bank model for growth | Techy Kings


Airtel Payments Bank (APB), which is set to post a profit in fiscal 2022, is betting on the payments bank model to grow its business to 100 million monthly transactions in the next few years, according to its managing director and chief executive officer Anubrata Biswas.

“The Payment bank model is built to scale. Now that we have reached a critical point, we do not need any more capital injection. Our business plan projects confident growth over the next few years built solely on the current payments bank model,” said Biswas.

The bank has recorded a profit of 8.2 crore in the first quarter of this fiscal compared to 9 crore during the fiscal year 2022. The bank currently has an annual revenue of Rs 1,139 crore in the first quarter as compared 941.3 crore in fiscal year 2022.

The biggest contributor to profits is from its B2B business, which helps 2,400 business partners digitize 5.6 trillion in small-ticket transactions, including remittances. Other portfolios include digital banking and financial inclusion businesses.

APB has more than 0.5 million banking points across the country, which has helped it touch one in six villages across the country. Biswas said he hoped the Reserve Bank of India (RBI) would allow payments banks to run micro-lending businesses. The payments bank industry has approached the RBI with a request to allow these banks to provide loans up to 1 lakh. Currently, payment banks are prohibited from conducting any type of loan.

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