Infibeam gets shareholders nod to foray in payments bank business

Most modes of retail digital payments grew in volumes between August and September, with credit and debit cards and prepaid payment instruments (PPIs), or wallets, being the laggards, according to data released by the Reserve Bank of India (RBI). (Image: Reuters)
Most modes of retail digital payments grew in volumes between August and September, with credit and debit cards and prepaid payment instruments (PPIs), or wallets, being the laggards, according to data released by the Reserve Bank of India (RBI). (Image: Reuters)

E-commerce firm Infibeam has said it has received shareholders’ approval to expand business in IT segment, set up a payments bank and raise Rs 2,000 crore. Shareholders of the company have also approved change in its name from “Infibeam Incorporation Limited” to “Infibeam Avenues Limited”, according to a regulatory filing.

In its notice for the extra ordinary general meeting to be held on June 28, 2018, Infibeam had said that it will seek shareholders nod to apply for authorisation from the Reserve Bank of India (RBI) for payments bank. The company had also sought approval to explore business opportunity in manufacturing of IT hardware.

Infibeam plans to leverage its financial technology and expand business in the domain by seeking RBI permit to issue all kind of prepaid payment instruments e-wallets, co-branded wallets, and any other prepaid payment instrument that the banking regulator may allow from time to time has been approved by the shareholders.

Infibeam’s consolidated profit after tax more than doubled to Rs 88.1 crore in fiscal year 2018 from Rs 43.5 crore a year ago mainly on account of over three fold growth in its services business.