India’s Paytm Payments Bank facilitates mobile transactions on the commerce platform. Paytm expects the central bank to allow it to resume taking on new customers in the next few months, a top executive told Reuters.
In March of 2022, the Reserve Bank of India ordered a comprehensive audit of its IT systems, citing material supervisory concerns, without elaborating further. This caused barring it from taking on new customers. The bank is working with the RBI to complete the IT audit and address the regulator’s concerns.
“The process is underway, and we think it should take three to five months from where we are right now,” Madhur Deora, group chief financial officer, Paytm, told Reuters on Sunday.
On Friday, one 97 Communications Ltd, the parent of financial technology firm Paytm, reported a wider fourth-quarter loss due to higher payment processing, marketing, and employee costs.
Madhur Deora stated that the company was on track to achieve profit by September 2023.
“We are seeing good growth in high margin businesses, and as a result, we are seeing improvements in contribution margin.”
“Our indirect expenses will not grow as fast as last year as we don’t expect to make any significant investments in new businesses or employee cost this year as we have already made those in the last year,” he added.
Paytm made its stock market debut in November last year in one of the country’s biggest-ever initial public offerings, but the shares have since sunk 70%.