Paytm shares tank another 20 pc; hit fresh lower circuit limit
New Delhi (PTI): Shares of One97 Communications Ltd, which owns Paytm brand, slumped another 20 per cent on Friday, as the RBI has 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 tanked 20 per cent to Rs 487.05 -- its lowest trading permissible limit for the day -- at the BSE.
On the NSE, it tumbled 20 per cent to hit the lower circuit limit of Rs 487.20.
Shares of One97 Communications plummeted 20 per cent on Thursday as well.
In two days, the company's market capitalisation (mcap) eroded by Rs 17,378.41 crore to Rs 30,931.59 crore.
Fintech firm Paytm sees an impact of Rs 300-500 crore on its annual operational profit, as its customers will not be able to add money to their wallets, FASTags etc as RBI barred Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account.
The central bank on Wednesday barred PPBL from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024.
Till then, customers can add money as well as withdraw money from the Paytm wallet and PPBL account.
RBI said the action against PPBL followed a comprehensive system audit report and subsequent compliance validation report of external auditors.
One97 Communications Ltd (OCL) holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Lorry strike not good for farmers, says K’taka Transport Min. Ramalinga Reddy
Bengaluru: Karnataka Transport Minister Ramalinga Reddy has said that any kind of strike is not good for the interest of the public and farmers.
After a meeting with representatives of the State Lorry Owners Association, Reddy addressed the media, pointing out that the strike was being held only now despite a decade of rising fuel prices under the central government.
The minister noted that the price of diesel has nearly doubled from ₹49.54 in 2015 to ₹91.05 currently without sparking similar protests during that time. He attributed the current economic strain on state governments to the central government's fiscal policies, arguing that state-level taxation was a forced measure to keep the system afloat. “When the real issue lies at the Centre, why strike now?” he questioned.
Meanwhile, G.R. Shanmukhappa, president of the State Lorry Owners Association, said the group has written multiple times to Chief Minister Siddaramaiah but has yet to receive a response. He reiterated that the association is ready for discussions if the government reaches out.
Their demands include a review of diesel prices, an end to extortion by RTO officials at border checkpoints, and the easing of restrictions on lorries entering Bengaluru, particularly those transporting daily essentials.
