RBI’s warnings on rising unsecured credit in the system and subsequent action increasing risk weights on such loans will make life harder for Paytm, which is fighting to hold on to its wallet business and payments bank, believe experts
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Shares of fintech major One 97 Communications, which runs Paytm, crashed 20% on BSE following RBI s ban on Paytm Payments Bank. The queue of sellers grew longer as the stock opened in the lower circuit. Last year, Berkshire Hathway sold its stake in Paytm. Brokerages like Jefferies and Motilal Oswal have downgraded Paytm shares.
Shares of Paytm, owned by One 97 Communications, crashed 20% on BSE after the RBI directed Paytm Payments Bank to halt new credit and deposit operations. Jefferies, a global broking firm, downgraded Paytm and highlighted the impact on Paytm s wallet business and profitability of merchant payments. Macquarie s Suresh Ganapathy emphasized the regulatory issues faced by Paytm and the potential implications for revenue and profitability.
(Bloomberg) Shares of digital-payments provider Paytm plunged 20% after Indian regulators ordered it to halt a bulk of its business, dealing a severe blow to a high-profile tech pioneer that grappled for years with authorities.Most Read from BloombergTrump Risks Losing More Than Half of Swing-State Voters If Found GuiltyMusk’s $55 Billion Pay Package Voided, Threatening World’s Biggest FortuneHouse Passes $78 Billion Business, Child Tax Break BillS&P 500 Has Its Worst Fed-Decision Day Since M