Paytm shares down by 5% to hit lower circuit after Bhavesh Gupta steps down

Paytm stocks dip: One97 Communications, the parent company of Paytm, witnessed a 5 per cent decline in its shares on Monday following the resignation of its president and chief operating officer, Bhavesh Gupta.

The stock of the fintech firm dipped by 4.99 per cent to Rs 351.70 on the BSE, hitting its lower circuit limit. Similarly, on the NSE, it fell by 5 per cent to Rs 351.40, reaching the lowest trading permissible limit for the day.

The departure of Bhavesh Gupta, who was responsible for overseeing the lending business, online and offline payments, and compliances at Paytm, was confirmed by an official statement released on Saturday. His decision to step down comes amidst challenges faced by the company, particularly the impact of the RBI's ban on Paytm Payments Bank (PPBL) from engaging in new transactions.

According to the statement, Gupta, who joined Paytm in August 2020 from Clix Capital (formerly GE Capital), has opted for a career break due to personal reasons. He will transition into an advisory role, providing guidance for Paytm's growth initiatives until the end of the year, before being relieved from his duties on May 31.

Paytm had earlier projected a loss of Rs 300-500 crore as a result of the RBI's restrictions on PPBL.

(With PTI inputs)