Paytm to cut postpaid, sub-₹50,000 loan exposure – Times of India

MUMBAI: One97, which operates under the Paytm brand, told investors on Wednesday that it is significantly reducing its postpaid loans and small-ticket personal loans for below Rs 50,000. The company would increase the distribution of bigger ticket personal loans and business loans.
“On the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with its continued focus on driving a healthy portfolio, the company has recalibrated the portfolio origination of less than Rs 50,000, which is prominently the postpaid loan product and will now be a smaller part of its loan distribution business going forward,” the company said.
Small-ticket personal loans have become more expensive for lenders after RBI increased capital requirements on these loans by 25% last month. Banks have said the stress is largely on the sub-Rs 50,000 segment.
In the investor call, Bhavesh Gupta, president and COO, said the shift in focus would result in a drop in monthly loan disbursals as the postpaid product had a very short duration but would not significantly impact earnings. However, the monthly loan disbursements were likely to fall from Rs 6,000 crore to Rs 4,500 crore. Gupta said the company was disbursing these loans for Aditya Birla Finance and Sumitomo Mitsui, which had acquired Fullerton India Finance.

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