The income tax authorities are scrutinizing online insurance aggregator PB Fintech, the parent company of Policybazaar and Paisabazaar, for alleged regulatory lapses and KYC non-compliance. A senior government official revealed that a survey has been conducted into the company, highlighting concerns about regulatory non-compliance with know your customer (KYC) norms. In response to the survey report, the income tax department is poised to initiate assessment proceedings against PB Fintech, involving a detailed examination of the company’s filed income return.

The scrutiny comes in the wake of regulatory issues, and the income tax department’s intervention may lead to further actions against the company. Notably, billionaire Azim Premji’s private equity fund, Premji Invest, recently divested a one percent stake in PB Fintech for Rs 457 crore through an open market transaction. Additionally, Claymore Investments (Mauritius) sold a 5.41 percent equity stake in PB Fintech through open market transactions on February 1.

PB Fintech achieved a historic milestone by turning profitable for the first time in the third quarter of FY24, reporting a profit of Rs 37 crore. The positive financial outcome was attributed to robust growth in insurance premiums, improved renewals with higher margins, and enhanced contributing margins. In the corresponding quarter of the previous financial year (Q3 FY23), the company had incurred a loss of Rs 87 crore.

The financial performance of PB Fintech in Q3 FY24 showcased a 43 percent growth in operating revenue, reaching Rs 871 crore compared to Rs 610 crore reported in the same quarter of the previous fiscal year.

Would you like to share your thoughts?

Your email address will not be published. Required fields are marked *