Paytm Shares Decline 6% Following RBI Cancellation of Payments Bank Licence
Paytm Stock Plummets as Reserve Bank of India Cancels Licence
Shares of One 97 Communications, the parent company of Paytm, experienced a sharp decline in early trade on Monday following the Reserve Bank of India's decision to cancel the licence of Paytm Payments Bank. This move effectively brings an end to any potential revival of the company's banking arm.
The Paytm stock was trading at Rs 1,077, down 6.1 percent in early morning trade. This decline is a direct result of investors reacting to the final regulatory step taken against Paytm Payments Bank, which had been under severe operational restrictions since January 2024.
The earlier action had halted fresh deposits and forced a gradual wind-down of operations, but the latest move formally ends the entity's ability to function as a bank. In response to the development, One 97 Communications released a statement asserting that the cancellation of the licence does not have a significant impact on the company's near-term earnings. This is because the payments bank business had already become largely inoperative, with its functions having been transitioned to a partner-led model.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Company | Share Price (Rs) | Percentage Change |
|---|---|---|
| One 97 Communications (Paytm) | 1,077 | -6.1% |
Note: The table above highlights the share price and percentage change of One 97 Communications in early morning trade on Monday.
Investor Takeaway
Investors should be cautious of the regulatory risks associated with Paytm's banking arm.
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