Targets to onboard 1 million customers each month in H2; deposits to grow more than 50% YoY.
Gurugram-headquartered Airtel Payments Bank is targeting onboarding at least 1 million, or 10 lakh, customers each month “some time in H2FY24”, as against 750,000-900,000 customers at present, managing director and CEO Anubrata Biswas told FE.
“We have users across accounts, wallets and platforms …We expect growth in monthly-transacting users and also have an aspiration to reach 1 million accounts sometime in H2FY24…,” he said. The payment bank’s monthly transacting users stood at 58 million during Q2. Active monthly banking units, meanwhile, are expected to grow to over 400,000 during the same period, from 397,000 currently. The banking outlets are predominantly located in rural areas, he added.
His comments came on the heels of the payments bank reporting a net profit at `7.7 crore during the second quarter, up 157% year-on-year (YoY), led by a higher growth in revenues and gross merchandise value (GMV).
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The payments bank’s overall revenue rose 39% YoY and 7% quarter-on-quarter (QoQ) to `427 crore during Q2. The sequential growth in revenue will continue at the current pace of 7%, Biswas said, adding that while the guidance on GMV is difficult to share, the payments bank registered its highest GMV in October. Its annualised GMV stood at `2.5 trillion during the second quarter.
In terms of deposits, the payments bank expects its overall base to increase by 50% YoY in quarters to come, and Biswas said the growth in deposit sustained over the 50% level for the last six quarters. As of September-end, Airtel Payments Bank’s overall deposits stood at `2,060 crore.
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“We are seeing much stronger customer adoption month-on-month. We just launched a new digital account opening process and as a combination of opening accounts digitally and through retailers, we are seeing very strong onboarding of customers,” he said.
Airtel Payments Bank is also looking to widen its base of shareholders by roping in new investors in FY25, Biswas said. Bharti Airtel held a 73% stake in the payments bank as of March end.
“It (bringing in new investors) will definitely be on the cards or a possibility in the next fiscal. The position of shareholders and the board is that an initial public offering is the desirable route in the medium term, preferably over the next three-four years, with maybe a couple of investors in those three years,” Biswas said.
