Fintech major One97 Communications, which operates the Paytm brand, has ruled out plans to apply for a Non-Banking Financial Company (NBFC) licence following the RBI's cancellation of Paytm Payments Bank's (PPBL) banking licence last month. During the company's Q4 earnings call on Thursday (May 7, 2026), Paytm President and Group CFO Madhur Deora stated, "We're not super excited about going for an NBFC licence." Deora noted the company's preference for a "win-win" partnership model where Paytm handles distribution, technology, and collections, while its blue-chip lending partners manage capital, risk, and cyclicality.
Deora emphasized the significant opportunity in the payments sector, stating that "we have a very large payments market; that market is growing, and our market share is growing, and that combined with low penetration means that the opportunity in the short to medium term already is very, very large." This strategic focus comes after the RBI cancelled the banking licence issued to Paytm Payments Bank last month for non-compliance with norms, citing that the bank's affairs were conducted in a manner detrimental to depositor interests. The bank failed to comply with the conditions stipulated in the payments bank licence issued to it.
Paytm reported a consolidated profit of ₹183 crore in the fourth quarter ended March 2026, marking a significant turnaround from a loss of ₹545 crore in the same period a year ago. According to the company's financial results, consolidated revenue from operations grew by 18.4 per cent to ₹2,264 crore during the reporting quarter from ₹1,912 crore in the March 2025 quarter. The company also posted a consolidated profit of ₹552 crore for the financial year ended March 2026, compared to a loss of ₹663 crore in FY25.
For the full financial year 2026, Paytm's annual revenue from operations grew by 22.2 per cent to ₹8,437 crore from ₹6,900 crore in FY25. As reported by The Hindu BusinessLine, One97 Communications had stated in a company filing that the company has no exposure to Paytm Payments Bank (PPBL) as it had already impaired its investment in the beleaguered entity as of March 31, 2024. The company's financial turnaround demonstrates its successful pivot toward the payments sector despite regulatory challenges with its banking subsidiary.
