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Now, Mahindras quit payments bank plan

business Updated: May 25, 2016 08:25 IST

NEW DELHI: Mahindras on Tuesday became the third company to drop out of the payments bank race, saying business profitability would take longer time due to “aggressive posturing” by many deep-pocketed players. Tech Mahindra is the third applicant to abandon its plan to set up a payments bank after Cholamandalam, which quit last month, and Dilip Shanghvi-IDFC BankTelenor combine last Friday. “Over a period of time, we have realised that the amount of aggression that has come into the marketplace only erodes the margins,” Tech Mahindra MD and CEO CP Gurnani said. The company reported a 90% jump in post-tax profit to Rs 897 crore for quarter ended March 31, 2016, on wider margins from an expanded revenue base, forex gains and lower tax payout.

First Published: May 25, 2016 08:25 IST