Updated March 1st, 2024 at 19:07 IST

Paytm shares rise 5% after board greenlights end to inter-company agreements with PPBL

The decision was approved by the Board of Directors on March 1, 2024, as per an exchange filing by the company.

Reported by: Business Desk
Paytm | Image:Shutterstock
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Stock market news: The shares of Paytm parent One97 Communications Ltd rose 4.99 per cent to an intraday high of Rs 423.45 apiece on the National Stock Exchange (NSE) on Friday, March 1, 2024. 

This comes after One97 Communications announced the discontinuation of various inter-company agreements with its associate entity, Paytm Payments Bank Limited (PPBL). The decision was approved by the Board of Directors on March 1, 2024, as per an exchange filing by the company.

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This development comes as part of Paytm and PPBL's efforts to bolster the independent operations of PPBL and reduce dependencies between the two entities. This decision aligns with Paytm's earlier announcement of partnering with other banks and implementing measures to ensure seamless services for its customers and merchants.

“One 97 Communications Limited and its services, which include the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to work uninterrupted,” the company said.

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The shares of One97 Communications were trading 3.72 per cent higher at Rs 418.30 apiece on the NSE as of 10:30 am.

The Reserve Bank of India (RBI) on January 31, 2024, barred Paytm Payments Bank from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after February 29, 2024, in the wake of persistent non-compliances and material supervisory concerns.

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The central bank said that the action against PPBL came after a comprehensive system audit report and subsequent compliance validation report by the external auditors. Paytm founder Vijay Shekhar Sharma stepped down as Paytm Payments Bank chairman earlier this week to enable a smooth transition as PPBL has moved to a new board structure consisting only of independent and executive directors. PPBL has also informed that it will commence the process of appointing a new chairman.

 

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Published March 1st, 2024 at 08:33 IST