Tech Mahindra Is the Third Entity to Drop Its Payments Bank Plan in India
Wednesday, May 25, 2016
Mahindras on Tuesday became the third entity 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 the plan to set up payments bank after Cholamandalam, which quit last month, and Dilip Shanghvi-IDFC Bank-Telenor combine that opted out 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 managing director and chief executive CP Gurnani told reporters, after its board decided not to pursue the opportunity.