Paytm Payments Bank is recruiting a host of experienced individuals from India’s financial services and banking sectors, with a view to overseeing the digitalization of its payment platform. With India embarking on a rapid digital overhaul of its banking sector, including the embracing of paperless transactions, Paytm Payments Bank is attempting to position itself as a next-generation solution.
As part of its overhaul, Paytm Payments Bank has named Deependra Singh Rathore as its new interim CEO, with current CEO Satish Gupta opting to retire from the helm. Rathore has been working as its chief product and technology officer for some time, with the step up to interim CEO seemingly a natural step forward. Within its official press release, Paytm Payments Bank confirmed a new full-time CEO would be appointed in due course.
Former IRS officer, Sunil Chander Sharma, has also been appointed as the company’s new chief operating officer. Sharma’s remit spans the operator’s customer service department, as well as its retail operations, HR, administration, and its relationship with law enforcement agencies (LEAs).
The bank is keen to cement itself as a major player in India’s digital banking subsector, working at scale to deliver “technology-driven solutions”. It is used by tens of millions of Indian consumers for all manner of digital payments. In recent years, it has become the payment method of choice at many of India’s online casinos, especially the many new casino operators that specialize in alternative payment methods including PhonePE, ecoPayz, and AstroPay.
Goldman Sachs, one of the world’s leading investment banks, has been increasingly bullish on the prospects of Paytm. It recently described Paytm as one of India’s most engaging growth stories, with its share price considered “attractive”. Goldman believes Paytm will post 50% revenue growth in the coming quarters, which could make its current share price undervalued very quickly.
The Paytm share price was down 49% in the year to date as of late September, with Goldman citing “regulatory headwinds and valuation contraction” as the main issues for its decline. However, it believes firmly in the “business model” which is set to display “strong traction”.
Goldman anticipates Paytm’s margins to improve further still, with forecasts for its full-year 2024 results to be the first to achieve adjusted EBITDA profitability. They feel that this could be the catalyst for the share price.
Another area that could light up the Paytm share price is Paytm’s relationship with the Reserve Bank of India. If the central bank opts to remove the ban on new Paytm customers as of March 2022, this could also light the blue touch paper for Paytm in the markets.
Paytm’s owner, One97 Communications, recently confirmed the payment provider had solid year-on-year growth across offline payments as well as online lending. Year-on-year increases in monthly transacting users and merchant payment volumes have also been noted for the second quarter of its 2023 fiscal year. In terms of its loan disbursals to consumers, it reached an annualized run rate of approximately $4.1 billion in September.