Paytm will not be closed even after 29th February! Company’s CEO gave assurance, yet share price fell by 20%
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Paytm Payments Bank But the shadow crisis is gradually deepening. The company’s share price has fallen by about 40 percent in the last two days. This morning the company’s stock price fell by 20 percent i.e. Rs 121.80 and reached the lowest level of last 52 weeks at Rs 487.20. Meanwhile, Chief Executive Officer of One97 Communications Limited (OCL)ceo) Vijay Shekhar Sharma (Vijay Shekhar Sharma) has assured people that even after February 29, Paytm will continue to work as before. He wrote on the social media platform ‘X’ that the company is committed to serving the country with full compliance. He said that for all the people using Paytm, your favorite app is working and will continue to work like this even after February 29. One97 Communications holds 49 per cent stake in Paytm Payments Bank Ltd (PPBL) but classifies it as its associate, not a subsidiary.
RBI had imposed a ban
The Reserve Bank of India (RBI) on Wednesday directed Paytm Payments Bank Limited not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. Since then the company’s shares are continuously falling. Vijay Share Sharma said that I along with every member of the Paytm team salute you for your continued support. Every challenge has a solution and we are committed to serve the country honestly with full compliance. India will continue to gain global accolades in payments innovation and inclusion in financial services, with Paytm Karo contributing the most. Paytm Payments Bank had said on Thursday that the RBI order is likely to impact the company’s annual operating profit by Rs 300-500 crore as its customers will not be able to deposit money in their wallets, Fastag etc.
Company’s market cap near 30,931
Amidst the continuous decline in Paytm’s shares, the market capitalization of the company has also decreased by Rs 30,931.59 crore. RBI had said in the order that the ‘nodal accounts’ of One97 Communications Limited and Paytm Payments Services, the company operating Paytm, should be closed as soon as possible before February 29. One97 Communications holds a 49 percent stake in Paytm Payments Bank Ltd. but classifies it as an associate, not a subsidiary.
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