Paytm witnesses significant drop in shares, reaching its lowest point in a year

NEW DELHI: Shares of One97 Communications, which owns the brand Paytm on Tuesday plunged nearly 8 per cent a day after RBI Governor Das ruled out any review of the central bank's action against Paytm Payments Bank Ltd (PPBL), saying that its decisions are well thought out. The stock of the company tumbled 7.50 per cent at Rs 390.90 apiece on the BSE. Shares of One97 Communications dropped 7.28 per cent at Rs 391.45 per piece on the NSE. During intra-day trade, the shares of the fintech company reached its 52-week low of Rs 385.60 on the NSE and Rs 385.75 on the BSE.

The 30-share BSE Sensex benchmark jumped 436.83 points or 0.61 per cent at 71,509.32, while NSE Nifty advanced 0.56 per cent at 21,737.75 points. On Monday, RBI Guv Das said, it is not against any fintech but its prime objective is to protect the interest of customers and depositors. Regarding the action taken against PPBL, he said directives against any regulated entities are taken whenever it finds that they don't take any action even after they are told to comply with the regulations.

In a major action against PPBL, the central bank, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29. While announcing the action against PPBL, RBI had said the direction follows persistent non-compliances and continued material supervisory concerns. One97 Communications holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary. In a regulatory filing on Monday, Paytm Payments Bank Ltd said its independent director Manju Agarwal resigned from the board due to personal reasons. Agarwal resigned from PPBL a day after RBI issued an order to Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. Over the past few weeks, the shares of the digital payments company have been under pressure due to the crisis it faced after the RBI initiated action against its company, Paytm Payments Bank.