NPCI diversifies shareholding with 131 new partners

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NPCI diversifies shareholding with 131 new partners:

NPCI plans to diversify its shareholding by on-boarding 131 new partners and raise ₹81.64 crore in equity share capital on a private placement basis.

The top 10 shareholders of the NPCI include the State Bank of India, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and HSBC Bank, who together hold a 76.82% shareholding in the umbrella retail payments entity. Further, another 45 smaller banks in total own a 23.18% shareholding in the NPCI.

The new partners include one public sector bank, 5 private sector banks, 40 foreign banks, 10 small finance banks (SFBs), 6 payments banks and 80 payments service providers.

New Partners -

Dhanlaxmi Bank, IDFC, Indian Overseas Bank, Bandhan Bank, Nainital Bank, IDBI, Bank of America, Barclays Bank PLC, JP Morgan Chase, Standard Chartered Bank, Industrial & Commercial Bank of China, and Credit Suisse to name a few. The SFBs include ESAF SFB, Equitas SFB and Ujjivan SFB while Fino Payments Bank, India Post Payments Bank, Airtel Payments Bank, Paytm Payments Bank and Jio Payments Bank, NSDL Payments Bank are some of the payments banks that will also acquire a stake in the NPCI.

On the other hand, the Clearing Corporation of India, Mobikwik, PhonePe, PayPoint, PayU, Ola Financial Services, Amazon Pay, Ebix, MoneyGram, Infibeam Avenues, Western Union, MoneyGram, Hitachi Payments Services, Vakrangee and A-Treds are some of the payment system operators that will join as shareholders.

According to regulatory filings by NPCI with MCA, the board passed a resolution to approve allotment of 6,50,000 equity shares at an issue price of Rs 1,250 per share to raise Rs 81.65 crore from 131 new partners. Fintrackr estimates that NPCI will be valued in the range of Rs 1,800-1,900 crore following this infusion.

During the fiscal ended in March 2020, NPCI generated a total income of Rs 1,221.2 crore, registering a nearly 25% increase as compared to income of Rs 980.2 crore it earned in FY19. During the same period profit after taxes have also increased by 26.4% to Rs 387.6 crore in FY20 from Rs 306.6 crore in FY19 on account on increased payments executed on the various retail payment systems for member banks through its services like NFS, CTS, IMPS, RuPay Card, NACH, AePS, UPI, NeTC, BBPS et al.