Paytm non-executive director Munish Ravinder Varma resigns

Munish Ravinder Varma, non-executive, non-independent director of One 97 Communications (Paytm), tendered his resignation with effect from the close of business hours on 14 March 2022, due to personal commitments and other pre-occupations.

Upon Varma's resignation, Vikas Agnihotri, alternate director to Munish Ravinder Varma, ceased to be alternate director of the company from closure of business hours on 14 March 2022.

On Friday (11 March), the Reserve Bank of India barred the company's Paytm Payments Bank venture from accepting new customers. The RBI decision is based on certain "material supervisory concerns" and the restrictions will continue pending a comprehensive audit of its information-technology systems, the central bank said in a statement. Paytm said in response that it is taking steps to comply, including the appointment of an external auditor.

Paytm believes that the measures imposed upon Paytm Payments Bank (PPBL) will not materially impact Paytm's overall business. This direction does not have an impact on the services that Paytm provides in partnership with other financial services institutions.

Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021.

On a consolidated basis, Paytm reported a net loss of Rs 778.50 crore in Q3 FY22, higher than net loss of Rs 535.50 crore in Q3 FY21. Net sales jumped 88.6% to Rs 1,456.10 crore in Q3 FY22 over Rs 772 crore in Q3 FY21.

Shares of Paytm were trading up 5.28% at Rs 623.70. It bounced after hitting a record low of Rs 572.25 in the morning trade today. The stock slumped 23.65% in the past three trading sessions.

It was listed on the bourses on 18 November 2021 at Rs 1955, a discount of 9.07% to the IPO price of Rs 2150.

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