Paytm shares trim most of sharp early losses; end over 1 pc lower

Shares of One97 Communications, which owns Paytm brand, ended over 1 per cent lower on Monday, trimming most of their sharp early losses. During the morning trade, the stock tumbled over 8 per cent 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 per cent to Rs 1,051.05 during the morning trade on the BSE. However, later it recovered most of the early lost ground and ended at Rs 1,130.15, down 1.48 per cent. At the NSE, shares of the firm ended at Rs 1,132.05, a decline of 1.33 per cent. During the morning deals, the stock tanked 8.38 per cent to Rs 1,051.10. 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, 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.

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