Airtel Payments Bank turns profitable

Need for secure digital payments and nearby access to banking during Covid-induced lockdowns fuelled the growth momentum of Airtel Payments Bank, which turned profitable for the first time in July, according to a top company official.

In a communication to the employees, Airtel Payments Bank Chief Executive Officer Anubrata Biswas has said over the last four years, the bank has grown rapidly, doubling every 18 months. "Today, the bank is a significant player in the financial and digital inclusion ecosystem of the country," Biswas said. He said that the bank has turned profitable for the first time in its history, and termed it a "cherished milestone" in the 55th month of operations. He, however, did not mention the financial details. The onset of the pandemic in early 2020 resulted in a "very challenging period" for the country, Biswas recalled. "It was equally challenging for us as a team. Yet, we have been relentless, focused, indeed unstoppable. The momentum gained from people's need for secure digital payments, and neighbourhood access to banking during lockdowns, gave us an opportunity to accelerate in a very cost-effective way," he said in the recent outreach to employees. Recently, Bharti Airtel Chief Executive Officer Gopal Vittal, during the telco's post-earnings call had said that Airtel Payments Bank currently has a monthly transacting user base of close to 30 million users, an annualised GMV of over Rs 1,00,000 crores, and a merchant base of over seven million. "I am also pleased that Airtel Payments Bank is now on the verge of hitting a 1000 crore annualised revenue run rate and has broken even in the month of July," Vittal had said. He had also highlighted that Airtel Payments bank is being fully integrated into all Airtel digital channels, both consumer app as well as retailer app making it one of the few companies that can collect cash for any service at the point of sale, online and offline.