Paytm Shares Plummet Further, Crash Another 9 Per Cent Amid Ongoing Crisis

This decline adds to the substantial fall from its 52-week high of Rs 998.3, which Paytm shares reached in October 2023. Since then, the stock has tumbled by a staggering 65.5 per cent

Paytm, India's leading digital payment platform, witnessed another steep fall in its shares on Wednesday (February 14), intensifying concerns over the ongoing crisis faced by its parent firm, One97 Communications. At 9:20 am, Paytm shares were trading at Rs 346.75 on the National Stock Exchange (NSE), marking a significant drop of 8.9 per cent from previous levels. The stock plummeted to a new 52-week low of Rs 344.1.

This decline adds to the substantial fall from its 52-week high of Rs 998.3, which Paytm shares reached in October 2023. Since then, the stock has tumbled by a staggering 65.5 per cent, with the majority of losses occurring after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank on January 31.

Since the RBI's intervention, Paytm shares have shed over half of their value, witnessing a decline of nearly 53 per cent.

The RBI's move came in response to "persistent non-compliances and continued material supervisory concerns" observed in Paytm Payments Bank Ltd (PPB), an affiliate of One97 Communications. Consequently, the RBI directed PPB to cease accepting deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards after February 29, excluding interest, cashbacks, or refunds. Additionally, the payments bank has been instructed to settle all pending transactions and nodal accounts by March 15.

At 11.30 am, Paytm shares were trading at Rs 356.45 apiece, down 6.28 per cent on the BSE on Wednesday.

Meanwhile, in response to escalating concerns among customers of Paytm Payments Bank Ltd (PPBL), the RBI is slated to unveil a comprehensive set of Frequently Asked Questions (FAQs) this week.

RBI Governor Shaktikanta Das underscored the significance of promptly addressing customer issues, asserting, "Customer interest and depositors' interest is uppermost for us." This announcement followed the customary address by the Finance Minister to the central bank's board, highlighting the urgency to address the challenges faced by the troubled bank's customers.