SUMMARY
- NPCI reported a 37% increase in profit to Rs 1,134 crore in FY24 compared to Rs 828 crore in FY23.
- Its total revenue grew to Rs 3,279 crore in FY24, up from Rs 2,311 crore in FY23.
- The company’s total expenses rose by 47.08%, reaching Rs 1,740 crore in FY24 from Rs 1,183 crore in FY23.
The National Payments Corporation of India (NPCI), which manages a broad spectrum of payment services like IMPS, UPI, BHIM, NACH, RuPay, AePs, FASTag, and BBPS, has continued to see strong growth, with a 39% expansion in size during FY24. Its profit margin also saw a 37% increase during the same period.
In FY24, NPCI’s earnings from its core operations jumped to Rs 2,876 crore, up from Rs 2,065 crore in FY23, according to its consolidated annual financial reports.
Founded in 2008 as a joint venture between the Reserve Bank of India (RBI), the Indian Bank’s Association, and the Indian Bank, NPCI is a non-profit entity that classifies its earnings as a surplus.
The share of revenue from payment services rose to 94%, an increase of 36.6% to Rs 2,693 crore in FY24 from Rs 1,972 crore in FY23. Other revenue streams for NPCI in the last fiscal year included income from payment services, certification, network, implementation, membership fees, hologram charges, and card fees.
The firm also generated Rs 403 crore primarily from interest on deposits and government bonds, bringing its total revenue to Rs 3,279 crore in FY24, up from Rs 2,311 crore in FY23.
For the National Payments Corporation of India, marketing and product-related cashback accounted for 45% of its total expenses, which saw a 75.7% increase to Rs 782 crore in FY24 from Rs 445 crore in FY23. These expenses also included upfront incentives given to banks for RuPay cards and various cash-back initiatives aimed at promoting digital payments, campaigns, and sponsorships.
The company’s total expenses rose by 47.08%, reaching Rs 1,740 crore in FY24 from Rs 1,183 crore in FY23, driven by higher spending on employee benefits, network and technology, data centers, professional training, and other operational costs.
This robust growth and prudent spending allowed NPCI to report a 37% increase in profit to Rs 1,134 crore in FY24 compared to Rs 828 crore in FY23. Its return on equity (ROCE) and earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 24.6% and 54%, respectively. On a per-unit basis, it spent Rs 0.61 to earn a rupee in FY24.
