Airtel Payments Bank Unlisted Share

Snapshot

Airtel Payments Bank is a subsidiary of Bharti Airtel, one of India's largest telecom companies. It was launched in 2017 and was the first payments bank to go live in India after the Reserve Bank of India (RBI) introduced the concept of payments banks in 2014. It aims to drive financial inclusion by providing accessible banking services such as savings accounts, fixed deposits, payments, and remittances, to the unbanked and underbanked population of the country. With its extensive network, leveraging Airtel's vast telecom infrastructure, the bank offers digital and traditional banking services to millions of customers across India. It is the fastest-growing digital bank in the country and ranked number six in mobile banking.

 Services

1. Savings and Current Accounts:

   - Digital Savings Account: Customers can open an account with a zero minimum balance requirement, offering interest on deposits and easy access to their funds via the Airtel Thanks app.

   - Rewards123 Savings Account: A premium savings account offering benefits like higher interest rates, cashbacks on transactions, and other rewards.

2. Money Transfer and Payments:

   - Instant Money Transfer: Facilitates quick and easy transfers to any bank account across India.

   - Utility Bill Payments: Customers can pay utility bills, recharge mobile phones, and pay for other services through the Airtel Thanks app or at designated outlets.

   - Merchant Payments: Enables digital payments at a wide network of merchant partners through QR codes, UPI, and other digital methods.

3. Insurance and Financial Products:

   - Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Provides life insurance coverage at affordable premiums.

   - Pradhan Mantri Suraksha Bima Yojana (PMSBY): Offers accidental insurance coverage.

   - Fixed Deposits: In partnership with financial institutions, Airtel Payments Bank offers fixed deposit options with attractive interest rates.

4. Airtel Safe Pay:

   - A unique security feature that ensures additional protection for UPI and net banking transactions, making digital payments more secure.

5. Airtel Money Wallet:

   - A digital wallet that allows users to store money and make quick payments for a variety of services, both online and offline.

Digital Initiatives

Smart Watch Launch: On March 19th, 2024, Airtel Payments Bank made its debut in the smartwatch market with the launch of its first-ever wearable device. This strategic move marks the bank's entry into the rapidly growing smartwatch segment. It is developed in collaboration with Noise and Mastercard and features NFC technology, enabling users to make contactless payments of up to Rs. 25,000 per day.

Awards and Recognitions

1.      Digital Bank of the Year and Innovative Product of the Year by India Banking Summit & Awards 2023.

2.Named in the top 20 organizations in The Employers of the Future 2024 study conducted by Leadup Universe in collaboration with Outlook Business and Kantar.

3.Awarded for Finance and Digital Payments Excellence in the Business Growth category at ASSOCHAM Awards 2024.

Management

Anubrata Biswas: CEO and MD

-Electrical Engineering Graduate from Jadavpur University and an MBA from IIM Ahmedabad.

-Extensive 13 years+ experience working in the banking sector at ICICI Bank.

Anuj Bansal: CFO

-BCom Graduate from SRCC, Delhi and holds a CA degree

-24 years of experience in transforming and leading organisations in the insurance and finance industry

Financials

All figures in crores

1. Airtel Payments Bank has reported a significant year-over-year revenue growth of 42.7%, increasing from ₹12,781 crores in FY23 to ₹18,244 crores in FY24. This robust growth reflects the bank's expanding customer base and increased adoption of its digital banking services.

2. The bank's EBITDA more than doubled, rising from ₹1,090 crores in FY23 to ₹2,172 crores in FY24, a growth of almost 100%.

3. The bank's PAT grew by 57% showcasing enhanced profitability driven by higher revenues.

Industry Overview

1. Indian Payment Gateway Market Growth: The Indian payment gateway has been growing at a compound annual growth rate (CAGR) of 15% from 2020 to 2025.

2. Global Digital Payment Market Size: The global digital payment market was valued at USD 96.07 billion in 2023 and is expected to grow at a CAGR of 21.1% from 2024 to 2030.

3. Increased Internet Penetration: Rising internet penetration and awareness of online transactions are driving the growth of payment gateways in India.

4. Shift to Online Payments: Consumers' preference for hassle-free online transactions is contributing to the rapid adoption and expansion of the payment gateway market.

5. Global Digital Payment Adoption: By the end of 2021, over two-thirds of adults worldwide were engaged in digital payments, a trend expected to continue growing.

6. Drivers of Global Digital Payment Growth: The global surge in digital payments is fueled by the increased use of smartphones, better internet accessibility, pandemic-induced cashless transactions, and supportive government policies.

Swot Analysis

 Strengths

1. Extensive telecom infrastructure leverage

2. Strong parent company backing (Bharti Airtel)

3. Robust digital payment solutions (e.g., Airtel Safe Pay)

4. Wide network of retail and online touchpoints

 Weaknesses

1. Limited to existing Airtel customers for certain services

2. Dependency on technology partners for some services

3. Lower market penetration compared to traditional banks

4. Regulatory challenges and compliance costs

 Opportunities

1. Expanding digital financial services market

2. Increasing financial inclusion in rural areas

3. Growth in contactless payment adoption

4. Potential for partnerships with fintech and e-commerce platforms

 Threats

1. Intense competition from other digital banks and fintech firms

2. Cybersecurity risks and data privacy concerns

3. Regulatory changes impacting operations

4. Economic fluctuations affecting consumer spending

Recent News

Airtel Payments Bank announced its consolidated results for the first quarter ended on 30 June 2024. In a significant milestone, for the first time, the Bank’s quarterly revenue grew to ₹610 crore, up by 52% YoY. The Bank’s net profits stood at ₹7.2 crore, up by 41% YoY. The Bank’s Monthly Transacting Users (MTU) exceeded 88 million giving a boost to customer deposits, which grew by 53% YoY to ₹2,943 crore.

Airtel Payments Bank Annual Report 2022-23

Airtel Payments Bank Annual Report 2020-21