One97 Communications, which owns the Paytm brand, saw its losses widening in the first quarter ended June 30 as the Reserve Bank of India’s restrictions on Paytm Payments Bank Ltd (PPBL) continued to pinch.

The fintech firm posted a loss of ₹840 crore compared with ₹550.5 crore in the preceding three months and ₹358.4 crore in the same period of the previous year. Consolidated revenues dipped to ₹1,501.6 crore compared with ₹2,341.6 crore in the year-ago period and ₹2,267.1 crore in the January-March 2024 period.

Paytm said its revenue and profitability will improve, driven by growth in operating parameters such as gross merchandise value (GMV), an expanding merchant base, recovery in loan distribution business and continued focus on cost optimisation.

The RBI had barred PPBL from accepting deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, from March 15 onwards.

Revenues from payments and financial services declined by 39 per cent to ₹1,164 crore from ₹1,918 crore in the same period of the previous year. In loan distribution, the value of loans given stood at ₹5,008 crore in the quarter compared with ₹5,079 crore a year ago.