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Airtel Payments Bank has no plan to become SFB
August 22, 2023
Airtel Payments Bank has no plan to become a small finance bank, MD and CEO Anubrata Biswas said in an interview with Moneycontrol. Unlike payments banks, small finance banks are allowed to extend credit.
The small finance bank model in no way applies to Airtel Payments Bank, Biswas said on August 21. Biswas added that it is deepening its product suite across two sets, including loan process/products and insurance.
The unlisted entity of the Bharti Group said its profit grew by 143 percent on a year-on-year basis and revenue increased to ₹400 crore for the first quarter of FY24. Customer deposits at Airtel Payments grew to ₹1,922 crore and it now has 55.4 million monthly transacting users.
We do not have any plan to become a small finance bank as we don’t believe that the small finance bank model in any way is applicable to Airtel Payments Bank. Also, we firmly believe that we will be able to drive more value and impact if we’re allowed to, as a payment bank, only micro lend. So our thought processes and actions are guided by that view.
In Q1 of FY24, we are seeing a very strong rural proposition where we give access to consumers and have created banking points close to them. Also, the urban proposition where we give a safe, secondary digital banking account – this is seeing a very strong uptick.
Therefore, we see a lot of momentum even going ahead. It’s our first ₹400 crore revenue quarter and this is a YoY growth rate of 40 percent.
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