Airtel Payments Bank's Q1 revenue surpasses Rs 600 Cr, growing 52% YoY

Airtel Payments Bank said its quarterly revenue has grown to Rs 610 crore in Q1 FY25 marking a 52% year-over-year (YoY) growth.

The bank's net profit rose by 41% YoY to Rs 7.2 crore. Key to this growth was the rise in Monthly Transacting Users (MTUs), which exceeded 88 million, boosting customer deposits by 53% YoY to Rs 2,943 crore, it said in a press release.

The bank’s gross merchandise value (GMV) reached over Rs 3.4 lakh crore on an annualised basis, it said. The growth was primarily driven by the increased adoption of the bank's digital savings account and other digital services.

"This industry-leading growth has been driven by strong uptake of our flagship safe daily transaction account for India, and a surge in digital payments across all our businesses. The bank, today, is well-positioned as first-in-class to take margin-enhancing advantage of India’s large unfolding digital opportunities,” Anubrata Biswas, MD and CEO of Airtel Payments Bank, said.

This comes at a time when one of Airtel's Payments Bank's largest competitors, now defunct Paytm Payments Bank, is fighting for a comeback after its auditor raised concerns about the bank's viability, as per reports.

In 2016, Airtel Payments Bank, a subsidiary of the telecom giant Bharati Airtel, became the first entity to receive a payments bank license from the Reserve Bank of India (RBI). This new banking model, conceptualised by the RBI, allows banks to accept deposits but not issue credit, to enhance financial inclusion and provide basic banking services to underserved populations.