Paytm hits the roof after denying claims on lenders providing loan guarantees

One 97 Communication (PayTM) hit an upper circuit of 5% to Rs 349.95 on bargain hunting after declining for six trading sessions.

The stock slipped 10.49% in the past six trading sessions to end at Rs 333.30 on yesterday, from its recent closing high of Rs 372.35 recorded on 30 April 2024.

The company denied media reports suggesting its lending partners invoking loan guarantees due to repayment defaults.

Paytm acts as a distributor of loans, and does not provide a First Loss Default Guarantee (FLDG) or other loan guarantees to lending partners. Therefore, the articles claims about invoking loan guarantees due to repayment defaults by our partnered lenders are inaccurate, the company stated in exchange filing.

The company said that it continues to collaborate with multiple banks and NBFCs, ensuring a diversified lending partnership network while strictly adhering to risk and compliance. Its Personal Loans distribution business was not disrupted and continued to scale effectively. The Merchant Loan business resumed at the end of March, 2024 following the completion of the @paytm handle transition.

With regards to media articles on recent employee exits, we wish to emphasise that the company has a robust senior leadership structure with over 50 Senior Vice Presidents, supported by a strong management and governance framework. Leaders within this structure oversee operations and reviews across business, product, and technology. All recent changes at Paytm have been aligned with pre-approved succession plans discussed with the Board in previous financial years.

As part of our annual performance assessment, we will continue to evaluate our talent bench periodically within the context of our future plans, which will result in transition of some roles and employees. However, it also presents an exciting opportunity to reward our high-performing talent to step into leadership roles and welcome new executives who will contribute towards the next wave of growth. We will continue to foster a dynamic environment that embraces change and empowers individuals to contribute to our continued success, the company stated in press release.

Paytm is India's leading mobile payments and financial services distribution company. Pioneer of the mobile QR payments revolution in India, Paytm builds technologies that help small businesses with payments and commerce. Paytms mission is to serve half a billion Indians and bring them to the mainstream economy with the help of technology.

The company had reported a consolidated net loss of Rs 221.70 crore in Q3 FY24 as against a net loss of Rs 392.10 crore posted in Q3 FY23. Revenue from operations jumped 38.23% to Rs 2,850.5 crore in the quarter ended 31 December 2023 from Rs 2,062.2 crore recorded in the same period last year.

Powered by Capital Market - Live News