DBT Bureau
Bengaluru, 22 May
Fintech firm One97 Communications, which owns the Paytm brand, has written off Rs 227.1 crore worth of investment in its associate entity, Paytm Payments Bank Limited (PPBL), which has been accounted for as impairment losses.
“The value of the Company’s investment in PPBL is impaired and, accordingly, has recorded an impairment provision of Rs 227 crore, representing the carrying value of its investment in PPBL and disclosed the same as Impairment of investment in associate,” the company said in an exchange filing.
The company, which holds 49% of PPBL, said there is an “ongoing uncertainty” associated with the business operations of PPBL post the Reserve Bank of India restrictions.
The Reserve Bank of India (RBI) barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants from March 15 onwards.
The fintech firm widened its to Rs 550 crore in the fourth quarter ended March 2024. The company had posted a loss of Rs 167.5 crore in the same period a year ago.
Its revenue from operations 2.8% to Rs 2,267.1 crore in Q4 as compared to Rs 2,464.6 crore in the corresponding quarter of FY23.
For the whole fiscal year-FY24, the company’s loss narrowed to Rs 1,422.4 crore. Paytm had recorded a loss of Rs 1,776.5 crore in FY23.
