Paytm: RBI Action On Payments Bank Has No Impact

Paytm reassures users that the Reserve Bank of India’s action against Paytm Payments Bank Limited will not impact its services or financial stability, as the two operate independently.

IMAGE: Photograph: Shailesh Andrade/Reuters

India’s leading payments app, Paytm (One 97 Communications Ltd), on Friday said the Reserve Bank of India’s action on Paytm Payments Bank Ltd (PPBL) has no financial or business impact on the company, reiterating that it does not have any material business arrangements or exposure with the banking entity.

In a regulatory filing, the Noida-based fintech major said PPBL operates independently, with no board or management involvement from Paytm.

œAs previously disclosed on March 1, 2024, the company does not have any exposure to PPBL or any material business arrangements with PPBL.

No services provided by the company are in partnership with PPBL.

Additionally, PPBL operates independently, with no board or management involvement from the company.

Paytm’s Financial Position and Investment in PPBL

Paytm also added that there is no financial impact on the company, since it had already impaired its investment in PPBL back in March 31, 2024.

œThere is no direct financial impact on the company since, as previously disclosed, the company had already impaired its investment in PPBL as of March 31, 2024, it said.

It further clarified that none of its services are linked to PPBL and that all its offerings, including those by its subsidiary, continue to function normally.

Uninterrupted Services and Core Revenue Growth

œAs informed earlier, Paytm (One 97 Communications Limited) and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies such as Paytm QR, Paytm Soundbox, Paytm card machines, and Paytm Payment Gateway, Paytm Money among others, added Paytm.

Paytm also emphasised that the matter relates solely to PPBL and should not be attributed to the company.

Over the past couple of years, Paytm has been doubling down on its core revenues, and has delivered three consecutive quarters of profit in FY26, signalling a robust operating model.

Paytm’s Profitability and Market Share

To be sure, Paytm reported a profit after tax of Rs 559 crore. Adjusting for a one-time Rs 190 crore charge related to a loan to its joint venture, Paytm First Games, profit after tax still stood at a sizable Rs 369 crore.

In the December quarter, Paytm reported a profit after tax (PAT) of Rs 225 crore, an improvement of Rs 433 crore year-on-year. EBITDA for the quarter improved to Rs 156 crore with an EBITDA margin of 7 per cent, reflecting an improvement of Rs 379 crore year-on-year driven by revenue growth and continued operating leverage.

Contribution profit stood at Rs 1,249 crore, up 30 per cent YoY with a contribution margin of 57 per cent, an improvement of 5 percentage points YoY.

Paytm UPI also continued to gain market share for the third consecutive quarter. Paytm’s consumer UPI GMV grew 35 per cent in the last nine months versus industry GMV growth of 16 per cent, the company had said during its Q3 FY26 results.

This has led analysts to recalibrate their outlook, with recent brokerage coverage highlighting Paytm as one of the few fintechs with superior margin profile, driven by its increasing mix of high-margin merchant payment revenues and financial services distribution.

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