The Paytm stock continued to reel from the tough action of the Reserve Bank of India (RBI) against its associate Paytm Payments Bank Ltd (PPBL).
Shares of One97 Communications on Friday tanked by another 20 per cent on Friday as investors assessed the adverse impact of the central bank strictures.
On Wednesday, the RBI had directed PPBL to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29.
Speaking to analysts during a concall on Thursday, the top management of the company said they will temporarily halt origination of new loans to solve operational challenges arising from the RBI order. Paytm had also said that there could be an impact of Rs 300-500 crore on its annual operational profit.
On the BSE, the Paytm stock tumbled 20 per cent to Rs 487.05, while a similar fall was seen on the NSE where it hit the lower circuit of Rs 487.20. In two days, the company’s market capitalisation has eroded by Rs 17,378.41 crore to Rs 30,931.59 crore.
One97 Communications Ltd (OCL) holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
Founder and CEO Vijay Shekhar Sharma took to social media to say that the payments and services app Paytm is working and that it will continue to work as usual even after February 29.
“To every Paytmer, your favourite app is working, will keep working beyond February 29 as usual... I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance,” Sharma said on X.
