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Cracks in payments-bank model: Aditya Birla’s venture shows signs of stress

It is facing strong headwinds in the absence of a viable business model. Vodafone M-Pesa, too, is facing turbulence.
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artisingh
9 Jul 2019 7 Mins Read 0 comment
Kumar Mangalam Birla, chairman, Aditya Birla Group Getty Images
Kumar Mangalam Birla, chairman, Aditya Birla Group
Just a little over a year after starting operations, Aditya Birla Idea Payments Bank is slowing down. According to multiple industry sources, Aditya Birla Group has decided to deprioritise the business. Aditya Birla Nuvo (now Grasim Industries) holds 51% while Idea Cellular has 49% in the joint venture, which in February last year became the fourth payments bank to
when the existing banks become more stable and show growth, the regulator will take a more pragmatic view and make its policies more business-friendly. According to a source, “If things get better, they (Aditya Birla Group) might just revive this (payments bank) business again.” The WhatsApp groups will get less crowded then. ( Graphics by Sadhana Saxena)
Just a little over a year after starting operations, Aditya Birla Idea Payments Bank is slowing down. According to multiple industry sources, Aditya Birla Group has decided to deprioritise the business. Aditya Birla Nuvo (now Grasim Industries) holds 51% while Idea Cellular has 49% in the joint venture, which in February last year became the fourth payments bank to when the existing banks become more stable and show growth, the regulator will take a more pragmatic view and make its policies more business-friendly. According to a source, “If things get better, they (Aditya Birla Group) might just revive this (payments bank) business again.” The WhatsApp groups will get less crowded then. ( Graphics by Sadhana Saxena)

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