Airtel Payments Bank does not fit the profile of a small financing bank, Biswas remarked on August 21. In addition, Biswas mentioned that the company is expanding both its loan process/products and insurance offerings.

Profit for the unlisted Bharti Group company surged by 143% year-on-year, and revenue reached Rs 400 crore, in the first quarter of fiscal year 24. The number of people using Airtel Payments to make purchases every month has risen to 55.4%, while customer deposits have increased to Rs 1,922 crore. Extracted and revised:

Do you have any plans to become a small finance bank?

We have no intention of transitioning into a small financing bank since we do not believe that this business model is suitable for Airtel Payments Bank. Furthermore, we are confident in our ability to create more value and impact if we are restricted to microlending as a payment bank. Our beliefs and actions are consequently shaped by that perspective.

What is your outlook on overall growth for the next financial year?

In the first quarter of FY24, we have seen a very strong rural proposition thanks to our provision of easy access to clients and the establishment of banking facilities in convenient locations. The urban proposal in which we provide a second, secure digital bank account is also on the rise.

As a result, there appears to be considerable forward momentum. Our first quarter with 400 million rupees in sales.

What kind of projects are in the pipeline to keep up this momentum?

We are increasing our banking presence and offering a debit card as part of our rural proposition.

Second, we are releasing enhanced digital interfaces and experiences that will culminate in a whole new digital banking proposal in the fiscal year of 2019–20. Third, we’re extending our lending and insurance processes and offerings to cover more of these categories.

What’s the status of your IPO plan?

The next two to three years are unplanned. It will depend on so many variables, including market timing, market conditions, etc., that I am unable to specify a specific year. Undoubtedly, the bank will eventually go public. The timeline will be difficult to estimate.

Why have payment banks not been able to survive?

The low cost per user and low revenue per user of this approach should be made abundantly evident. The only way to reduce user fees at this moment is to onboard a very large number of people and invest that much time and effort over many years. The approach was effectively put on hold since some payment banks were unwilling to comply. Players that understood the situation well invested that time, and today everyone is making money.

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