Image Source : PIXABAY Stock market graph
Paytm’s parent company, One97 Communications, witnessed a significant drop in its shares on Tuesday, declining by nearly 8 per cent following Reserve Bank of India (RBI) Governor Das’s statement affirming the central bank’s stance against Paytm Payments Bank Ltd (PPBL).
This came as Das ruled out any reconsideration of the RBI’s recent actions, emphasising that the decisions made were carefully considered to safeguard customer and depositor interests.
On the Bombay Stock Exchange (BSE), One97 Communications’ stock plummeted by 7.50 per cent to reach Rs 390.90 per share, while on the National Stock Exchange (NSE), it fell by 7.28 per cent to Rs 391.45 per share. The company’s shares hit a 52-week low during intra-day trading, touching Rs 385.60 on the NSE and Rs 385.75 on the BSE.
Meanwhile, the broader market indices showed a positive trend, with the BSE Sensex surging by 436.83 points, or 0.61 per cent to 71,509.32, and the NSE Nifty advancing by 0.56 per cent to 21,737.75 points.
Governor Das reiterated that RBI’s actions are not targeted against any particular fintech entity but are aimed at upholding regulatory compliance and protecting stakeholders’ interests. The recent directive against PPBL, issued on January 31, mandated the bank to cease accepting deposits or top-ups in various customer accounts and instruments by the end of February.
One97 Communications, which holds a 49 per cent stake in PPBL, categorizes it as an associate rather than a subsidiary. In response to the RBI’s actions, Paytm Payments Bank announced the resignation of its independent director, Manju Agarwal, citing personal reasons. Agarwal’s resignation coincided with the RBI’s directive to halt certain banking activities.
The ongoing crisis surrounding Paytm’s banking arm has exerted downward pressure on the digital payments company’s shares in recent weeks, reflecting investor concerns over regulatory compliance and corporate governance issues.
(With PTI inputs)
READ MORE: RBI rules out review of action against Paytm Payments Bank, to issue FAQ to address customers’ concerns
READ MORE: Retail inflation eases to 3-month low of 5.1 pc in January 2024: Govt data
