Updated February 13th, 2024 at 10:36 IST
Paytm continues to struggle as stock plummets to record low, Know why
RBI Governor Shaktikanta Das stated that the central bank will not reconsider its decision regarding Paytm Payments Bank's regulatory compliance issues.
- 2 min read
Paytm continues to struggle: Shares of payments aggregator Paytm plunged as much as 8.71 per cent to hit a fresh record low of Rs 385.75 per share after brokerage firm Macquarie downgraded the stock, citing concerns over a potential loss of customers due to regulatory actions against its banking arm by the Reserve Bank of India (RBI).
The foreign brokerage firm downgraded Paytm, which is owned and operated by One97 Communications, to an 'underperform' rating and slashed its target price to Rs 275 from Rs 650.
The downgrade comes amid reports of an independent director, Manju Agarwal, resigning from the board of Paytm Payments Bank on February 1 due to personal commitments, as confirmed by Paytm in an exchange filing.
Additionally, the RBI, in its recent regulatory action, ordered Paytm affiliate Paytm Payments Bank to cease most of its operations, including deposits, credit products, and its popular digital wallets, by February 29.
RBI Governor Shaktikanta Das stated that the central bank will not reconsider its decision regarding Paytm Payments Bank's regulatory compliance issues. These developments have heightened concerns about the future of Paytm's business operations and its ability to retain customers amid regulatory challenges.
As of 9:46 am, shares of Paytm were trading 7.38 per cent lower at Rs 391.40 per share.
Published February 13th, 2024 at 09:53 IST