New Delhi, February 1: Shares of One97 Communications Ltd, which owns Paytm brand, plummeted 20 per cent on Thursday as the RBI directed Paytm Payments Bank Ltd (PPBL) to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. The stock cracked 20 per cent to Rs 608.80 -- its lower circuit limit -- on the BSE.
At the NSE, it tumbled 19.99 per cent to hit the lowest trading permissible limit for the day of Rs 609. The company's market capitalisation (mcap) also eroded by Rs 9,646.31 crore to Rs 38,663.69 crore in early trade. However, any interest, cashbacks, or refunds may be credited back to customers anytime. Paytm Shares Crash 20 Percent to Lower Circuit as RBI Puts Restrictions on Its Payments Bank.
The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement. RBI also said the 'nodal accounts' of One97 Communications Ltd (OCL) and Paytm Payments Services are to be terminated at the earliest, in any case not later than February 29, 2024.
OCL, which owns Paytm brand, holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
The RBI's order will have an impact of Rs 300-500 crore on annual operational profit of the company. RBI Action Against Paytm: Reserve Bank of India Stops Paytm Payments Bank From Accepting Fresh Deposits After February 29, Here’s Why.
"Depending on the nature of the resolution, the company expects this action to have a worst case impact of Rs 300-500 crore on its annual EBITDA going forward. However, the company expects to continue on its trajectory to improve its profitability," Paytm said in a regulatory filing.