Payments banks, a viable model
Payments banks, a viable model: Airtel Payments Bank MD
Airtel Payments Bank remains optimistic about the prospects in the sector, despite concerns about the viability of the model.
“Payments banks remain a very viable model,” said Anubrata Biswas, Managing Director and CEO, Airtel Payments Bank.
Speaking to reporters on the sidelines of FIBAC 2019, Biswas said it is a business that requires scale first and is also a very capital-efficient model.
“There are no opening of branches...As such, there is no difference between a payments bank and a bank, except the former cannot lend. But 70 per cent of the income is still there. Payments bank does not require any capital for lending,” he said.
Biswas said the bank is not looking for any further capital infusion, apart from the ₹300 crore injected this fiscal, and the induction of new partners is “still a matter of discussion”.
“Payments banks remain a very viable model,” said Anubrata Biswas, Managing Director and CEO, Airtel Payments Bank.
Speaking to reporters on the sidelines of FIBAC 2019, Biswas said it is a business that requires scale first and is also a very capital-efficient model.
“There are no opening of branches...As such, there is no difference between a payments bank and a bank, except the former cannot lend. But 70 per cent of the income is still there. Payments bank does not require any capital for lending,” he said.
Biswas said the bank is not looking for any further capital infusion, apart from the ₹300 crore injected this fiscal, and the induction of new partners is “still a matter of discussion”.
