Paytm slides after PPBL's MD & CEO Surinder Chawla resigns

One 97 Communications (Paytm) declined 1.46% to Rs 398.40 after the firm said that its associate entity, Paytm Payments Bank's (PPBL) managing director and CEO (MD& CEO) Surinder Chawla has tendered his resignation on 8 April 2024.

Surinder Chawla has tendered his resignation on account of personal reasons and to explore better career prospects. He will be relieved from PPBL with effect from close of business hours on 26 June 2024, unless changed by mutual consent.

As informed earlier, nearly all agreements between the company and PPBL have been terminated as per the companys disclosure on 1 March 2024 and the board of PPBL has been reconstituted with five independent directors including an independent chairperson, and no nominees from the company, as per the disclosure on 26 February 2024. In line with ongoing efforts, the company continues to collaborate with banking partners to enhance its merchant acquiring and UPI services.

Earlier in January 2024, the Reserve Bank of India (RBI) had taken action against Paytm Payments Bank, restricting the acceptance of deposits and top-ups in customer accounts, wallets, and FASTags beyond 29 February 2024. This decision follows reported non-compliance with regulations and supervisory concerns, as outlined in the RBI's statement citing persistent non-compliances and material supervisory concerns.

One 97 Communications is the digital financial services firm which operates under the Paytm brand. Paytm is India's payment super app offering consumers and merchants comprehensive payment services.

One 97 Communications (Paytm) 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, due to accelerated GMV growth, higher device addition, and growth of financial services business.

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