SUMMARY
Airtel Payments Bank has reported a significant boost in profitability for Q2 FY25, recording a 45% jump in net profit to INR 11.2 Cr compared to INR 7.7 Cr a year ago. Revenue surged by 58% YoY to INR 674 Cr, driven by strong adoption of digital services across urban and rural areas. Key highlights include crossing the 100 Mn Monthly Transacting User (MTU) milestone and an annualised GMV of $40 Bn. These impressive figures underscore the bank’s pivotal role in advancing digital banking in India.
Airtel Payments Bank’s Strong Q2 FY25 Performance
Airtel Payments Bank, one of India’s top digital banks, continues its upward trajectory. With a 45% YoY increase in net profit for Q2 FY25, the bank has solidified its position as a prominent player in the sector. Revenue soared to INR 674 Cr, reflecting a 58% YoY growth from INR 427 Cr in Q2 FY24, boosted by digital product adoption.
The bank’s EBITDA also witnessed an impressive 87% rise YoY, reaching INR 76.1 Cr. This robust performance highlights Airtel Payments Bank’s impact on digital banking, especially with its focus on safe, accessible digital financial solutions.
CEO’s Perspective on Growth and Innovation
Anubrata Biswas, MD & CEO of Airtel Payments Bank, emphasised the bank’s growing relevance in India’s digital banking space. “These results underscore our position as a key player within the digital banking sector. The rapid adoption of our digital solutions and security features has made us India’s first choice for a safe second account,” he said. Biswas believes that this momentum validates the strength of the payments bank model, especially in driving financial inclusion and fulfilling India’s evolving digital needs.
Key Milestones and Metrics: Leading the Digital Banking Landscape
In a pivotal achievement, Airtel Payments Bank crossed 100 Mn MTUs in Q2 FY25, marking a 76% YoY increase in active users. Meanwhile, the bank’s annualised Gross Merchandise Value (GMV) reached $40 Bn, fueled by the popularity of its digital savings accounts and associated products.
Airtel Payments Bank also reported customer balances of INR 2,950 Cr, a 43% increase YoY, underscoring growing consumer trust and engagement. Additionally, the bank maintains a leadership position in both urban transit and rural banking, demonstrating its versatility in catering to diverse customer segments.
Expanding Reach and Services for Broader Financial Inclusion
Since its launch in 2017 with an initial investment of $440 Mn, Airtel Payments Bank has scaled its operations to reach both urban and rural consumers across India. Today, the bank operates through over 500,000 neighbourhood banking points, making it accessible even in remote locations. Known as the largest micro-cash player in the country, it digitizes INR 8,000 Cr in cash transactions monthly in collaboration with 4,000+ corporate partners.
Digital Solutions and Diverse Offerings Catering to three main customer segments—Urban Digital, Underbanked, and Industries & Institutions—Airtel Payments Bank provides a range of services, including digital banking solutions, insurance, lending, and investment options. With its massive user base and extensive network, Airtel Payments Bank processed over 800 Cr transactions annually, ranking among India’s top five mobile banking providers.
FAQs
What factors contributed to Airtel Payments Bank’s growth in Q2 FY25?
The growth was largely driven by strong adoption of Airtel Payments Bank’s digital solutions in both urban and rural markets, as well as customer trust in its secure platform.
How is Airtel Payments Bank contributing to financial inclusion?
With over 500,000 banking points and partnerships with 4,000+ corporate clients, Airtel Payments Bank brings accessible digital banking to remote and underserved areas, fostering financial inclusion across India.
How does Airtel Payments Bank compare to other payments banks in India?
Airtel Payments Bank is among the few profitable payments banks in India, alongside Fino Payments Bank. It ranks among the top five mobile banking providers with a rapidly growing user base and transaction volume.
What are Monthly Transacting Users (MTUs) and GMV?
MTUs represent the number of users actively transacting each month, while GMV (Gross Merchandise Value) is the total value of transactions processed through the bank’s digital platform, which hit $40 Bn annualised in Q2 FY25.
As Airtel Payments Bank continues to drive innovation and expand its digital reach, it’s setting a new pace in the world of digital banking. With a solid foundation in both rural and urban markets, the bank’s achievements reflect India’s rapid shift toward a fully digital economy.
Will Airtel Payments Bank’s momentum continue to reshape the financial landscape in the quarters ahead? As more consumers embrace digital solutions, it could very well lead the charge in revolutionising how India banks.
