Company clarifies zero exposure after RBI barred PPBL from key banking operations in 2024

Contents

Paytm reiterates no operational or governance linkage with PPBL No financial impact as PPBL investment already written down All Paytm services continue to operate without disruption Profitability improves; three consecutive profitable quarters reported UPI growth outpaces industry; market share gains implied Key clarification: separation from PPBL remains central issue FAQs

Paytm (One 97 Communications Ltd) said its business remains unaffected by regulatory action taken by the Reserve Bank of India against Paytm Payments Bank Ltd (PPBL), reiterating that it has no financial exposure or operational dependency on the payments bank.

The clarification follows RBI’s directive issued in early 2024 that restricted PPBL from onboarding new customers and conducting certain banking operations due to supervisory concerns.

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Paytm reiterates no operational or governance linkage with PPBL

In its regulatory filing, Paytm stated:

It has no material business arrangements with PPBL
No services are offered in partnership with PPBL
PPBL operates independently, with no board or management overlap

The company added that the regulatory matter relates solely to PPBL and should not be attributed to Paytm.

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No financial impact as PPBL investment already written down

Paytm said there is no financial impact from the RBI action, as it had already impaired its investment in PPBL as of March 31, 2024.

This means any potential losses linked to the payments bank have already been accounted for in its financial statements.

All Paytm services continue to operate without disruption

The company confirmed uninterrupted operations across its ecosystem, including:

Paytm app and UPI services
Paytm QR, Soundbox, and card machines
Payment gateway and merchant solutions
Subsidiary offerings such as Paytm Money

Profitability improves; three consecutive profitable quarters reported

Paytm said it has delivered three consecutive profitable quarters in FY26, according to its financial disclosures.

Key reported metrics include:

Profit after tax (PAT): ₹559 crore
Adjusted PAT (excluding ₹190 crore one-time charge): ₹369 crore

For Q3 FY26:

PAT: ₹225 crore (up ₹433 crore year-on-year)
EBITDA: ₹156 crore with 7% margin
Contribution profit: ₹1,249 crore (up 30% YoY)
Contribution margin: 57%

Paytm reported that its consumer UPI GMV grew 35% over the last nine months, compared to industry growth of 16%.

While the company did not disclose its exact UPI market share in this filing, the higher growth rate indicates incremental share gains in a market dominated by players such as PhonePe and Google Pay.

Key clarification: separation from PPBL remains central issue

The company’s filing primarily addresses concerns around spillover risk from PPBL.

By reiterating:

No financial exposure
No operational linkage
No governance overlap

Paytm aims to isolate its core business from regulatory developments affecting the payments bank.

FAQs

Does RBI action on PPBL impact Paytm?

Paytm said there is no financial or business impact from RBI’s action on Paytm Payments Bank Ltd.

What action did RBI take against PPBL?

The Reserve Bank of India had restricted PPBL from onboarding new customers and conducting certain banking operations due to supervisory concerns in 2024.