Paytm shares drop 5%, down for 4th day ahead of PPBL deadline

Shares of One97 Communications Ltd (Paytm) tanked 5 per cent, the third lower circuit in as many days, with the stock taking its losing to run to the fourth straight session. The stock fell, even as a media report suggested The National Payments Corporation of India was working to certify Paytm’s application to become a third-party payment app.

A third-party application provider license would allow customers to continue using the Paytm app for payments through unified payment interface (UPI), even as its banking arm, Paytm Payments Bank, ceases operations by March 15, following RBI regulatory action amid non-compliance issues.

An ET report quoting unnamed senior bankers suggested that four banks namely Axis Bank, YES Bank HDFC Bank and State Bank of India (SBI) would be supporting Paytm’s consumer-facing UPI payments.

The Paytm stock fell 4.98 per cent to hit a low of Rs 334.35 on BSE, before recovering some of the lost ground. The stock was later trading at Rs 337.80, down 4.01 per cent.

The scrip has fallen 17 per cent in the four-day selloff. Paytm stock in fact is down 66.50 per cent from its 52-week high of Rs 998.30 hit in October last year.

A Paytm Spokesperson said, “One 97 Communications and its services, which include the Paytm app, and merchant devices like Paytm QR, Soundbox and Card Machines continue to work uninterrupted. We are expanding our financial services distribution platform in partnership with leading institutions. Paytm is committed to creating an inclusive next-generation financial ecosystem for our users across the country.”