Shares of Paytm jumped 10% to touch the upper circuit at INR 496.75 on the BSE on Wednesday. Despite this, the stock is currently at a 13-month low level
Earlier this week, Paytm CEO and founder Vijay Shekhar Sharma met the officials of the RBI and finance minister Nirmala Sitharman
Paytm plunged into crisis after the RBI last week cracked down on Paytm Payments Bank for “persistent non-compliances”
Shares of fintech major Paytm
jumped 10% to touch the upper circuit at INR 496.75 on the BSE on Wednesday (February 7) amid the crisis at the company following the Reserve Bank of India’s (RBI’s) restrictions on Paytm Payments Bank.
After a sharp fall of over 42% in three consecutive sessions since Thursday, Paytm shares had gained 3% in Tuesday’s trading session.
Despite the 10% increase today, the stock is currently at a 13-month low level.
On January 31, the RBI barred Paytm Payments Bank from taking any deposits or credit transactions, or top-ups in any of its customer accounts. The platform has also been restricted from providing any other banking services, such as UPI facility and fund transfers, after February 29, 2024.
Since then, there are concerns about how the central bank’s action would impact Paytm’s business. It is pertinent to note that One97 Communications, the parent of Paytm, holds a 49% stake in Payment Payments Bank.
In an exchange filing, Paytm said last week it expects the RBI’s restrictions to hit the company’s annual EBITDA by INR 300-500 Cr.
Meanwhile, a number of brokerages have also warned of a major hit on Paytm’s finances following the RBI’s crackdown.
Amid all these, Paytm CEO and founder Vijay Shekhar Sharma met the officials of the RBI on Monday to discuss the regulatory action on Paytm Payments Bank. While Sharma sought extension of the February 29 deadline for the payments bank during the meeting, he reportedly failed to get any assurances from the central bank.
A day after this, Sharma also met finance minister Nirmala Sitharaman. The meeting lasted for about 10 minutes.
As per a latest report, the RBI is likely to issue a clarification on the ongoing crisis at the fintech giant considering its massive user base.
