PPBL 'at farm' length from One97 Comm, don't need incremental customers for credit biz growth: Vijay Shekhar Sharma

economictimes.indiatimes.com:

Paytm Payments Bank Ltd and One97 Communications Ltd (OCL) are two different companies which operate not just at arm's length but «at farms» length, a top official of Paytm said on Saturday. In response to a question on the impact of the RBI banning Paytm Payment Bank Ltd (PPBL) from onboarding new customers, Paytm founder and CEO Vijay Shekhar Sharma during the company's second-quarter earnings call said that the company does not need incremental customers for the growth of credit business.
"Paytm Payments Bank Limited and Paytm, which is OCL, are two very different companies not just at arm's length, I call it farm length now.

The approach here is of a completely clear understanding that whatever Paytm Bank does is for its good and for their business plan," Sharma said.
PPBL is a group company of Paytm in which it holds a 49 per cent stake. However, Paytm books show PPBL as an associate of the company and not as a subsidiary.

Sharma said Paytm acquires consumers for various consumer payment products and then serves the merchants.
«For our credit business to grow, we actually do not need incremental consumers on our platforms. It is rather better for us to farm the current customers and penetrate on them instead of acquiring new consumers,» Sharma said.

Paytm has reported a narrowing of consolidated loss to Rs 291.7 crore in the second quarter ended September 30, 2023, compared to a loss of Rs 571.5 crore in the same period a year ago.
The consolidated revenue from operations of the company increased by about 32 per cent to Rs 2,518.6 crore during the reported quarter from Rs 1,914 crore in the September 2022 quarter.
Paytm's revenue for financial services and others grew 64 per cent YoY to Rs 571 crore in the