Paytm shares fell 2% on Friday to hit a fresh record low of INR 318.35 on the BSE
Since Monday, Paytm shares have lost 23% amid the regulatory crisis
In the last one month, Paytm stocks have dropped nearly 55%
Shares of One 97 Communications, the parent company of fintech major Paytm, continued to hit a new low for the fifth consecutive day on Friday (February 16).
The fintech major’s shares fell another 2% on Friday to hit a fresh record low of INR 318.35 on the BSE. So far in the week, since Monday, the stock has lost 23% of its market value following the regulatory action on its payments bank.
The shares were trading at INR 332 apiece at 12:47 pm on BSE on Friday.
Over the past month, Paytm’s stocks have slipped nearly 55%. Furthermore, the fintech major has lost around INR 27,000 Cr of its value in the last 11 trading days.
The Reserve Bank of India (RBI) on January 31 barred Paytm
Payments Bank from taking deposits, credits, or processing top-up transactions in its customer accounts for ‘persistent non-compliances’. The bank has also been barred from processing other banking services like UPI facilities and funds transfers from February 29.
Meanwhile, the central bank’s governor Shaktikanta Das on Monday said there is “hardly any room” to review the action on the payments bank
Moreover, RBI reportedly asked the Directorate of Enforcement (ED) to check for suspected breaches at the fintech major’s banking unit Paytm Payments Bank.
Responding to reports of the ED registering a case of forex violations against Paytm Payments Bank, Paytm on Wednesday said its banking unit does not undertake outward foreign remittances.
“We would also like to clarify that our associate Paytm Payments Bank Limited does not undertake Outward Foreign Remittance,” the company said in an exchange filing.
Due to the crisis, brokerage firm Macquarie recently downgraded One97 Communications to ‘underperform’ from an earlier ‘neutral’ rating and lowered its price target (PT) to INR 275 from INR 650.
Macquarie also increased loss estimates on Paytm by 170% and 40% over FY25 and FY26, respectively, factoring in a 60-65% decline in revenue due to lower payments and the company’s distribution revenue.
In addition, the road tolling authority has issued a fresh alert urging highway users to buy FASTags from authorised banks and the name of Paytm has been omitted from the list.
Taking to its official X (formerly Twitter) handle, Indian Highway Management Company (IHMCL), the electronic tolling arm of the National Highways Authority of India (NHAI), has put out a list of 32 authorised banks from where commuters can buy FASTags for vehicles.
“Travel hassle-free with FASTag! Purchase your FASTag today from the authorised banks listed below,” IHMCL said on a post, excluding Paytm Payments Bank from the list of authorised banks.
