Paytm parent, One97 Communications, witnessed a major plunge in its shares in the trading session on Tuesday. The fintech major’s stock dropped 10 per cent in the day and hit a fresh 52-week low of 380 on the exchanges.
The firm’s shares slipped to Rs 380.35 on the BSE, and Rs 380 on the NSE, marking a decline of 10 per cent. The share drop follows the announcement from the Reserve Bank of India Governor, Shaktikanta Das, on Monday when he clarified that the regulator will not be conducting any review of its disciplinary action taken against Paytm Payments Bank Ltd (PPBL).
“At the moment let me say very clearly there is no review of this (PPBL) decision. If you are expecting a review of the decision, let me very clearly say there is (going to be) no review of the decision,” the RBI official said.
Notably, the banking regulator in the last week of January, issued a ban on the banking business of Paytm, the Paytm Payments Bank, and barred it from accepting any top-ups or cash deposits in the customer accounts, wallets, FASTags, and other instruments, after February 29, 2024. The bank cited non-compliance with know your customer norms, a lack of transparency, and fake compliance submissions as the instigators that forced the action against the fintech major.
One97 Communications is the parent firm of Paytm and owns a 49 per cent share in PPBL, however, the firm classifies it as an associate of the company and not a subsidiary.
On Monday, PPBL informed via an exchange filing that one of its independent director, Manju Agarwal, has resigned from the entity’s board citing personal reasons. The resignation came a day after the banking regulator instructed PPBL to stop allowing deposits or top-ups in wallet and other instruments after the February end deadline.
In recent weeks, the fintech has seen major fluctuations in the stock market due to the RBI’s action against its associate.