Paytm Shares Tank Over 8 Pc

Shares of One97 Communications, which owns Paytm brand, tumbled over 8% on Monday after the RBI announced the cancellation of banking licence issued to Paytm Payments Bank for non-compliance with norms, saying the affairs of the bank were conducted in a manner detrimental to the interest of its depositors.

The stock dived 8.37% to ₹1,051.05 on the BSE.

At the NSE, shares of the firm tanked 8.38% to ₹1,051.10.

Later, the stock trimmed most of the early losses. At the BSE, it quoted 3.02% down at ₹1,112.50. On the NSE, the stock traded at ₹1,114.95, a decline of 2.93%.

The bank failed to comply with the conditions stipulated in the Payments Bank licence issued to it, the central bank said on Friday.

One97 Communications in a filing said the company has no exposure to Paytm Payments Bank (PPBL) as it had already impaired its investment in the beleaguered entity as of March 31, 2024.

PPBL, was an associate firm of Vijay Shekhar Sharma-promoted fintech firm Paytm, came under the regulatory scanner on multiple occasions earlier, including in March 2022 when the central bank barred it from onboarding new customers.

The licence was cancelled effective from the close of business hours on Friday, the Reserve Bank of India (RBI) said, adding that Paytm Payments Bank has enough liquidity to repay its entire deposit liability upon winding up.

The RBI said the affairs of the bank were conducted in a manner detrimental to its own interests as well as its depositors.