- ByStartupStory | April 10, 2024
In a recent development, the shares of One97 Communications, the parent company of Paytm, experienced a 4% drop, touching an intra-day low of Rs 388. This decline follows the resignation of Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank.
Chawla tendered his resignation citing personal reasons and a desire to explore better career prospects. He is set to be relieved from his duties on June 26. The company addressed the departure in an official exchange filing, stating:
“As informed earlier, nearly all agreements between the Company and PPBL have been terminated as per our disclosure on March 1, 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 our disclosure on February 26, 2024. In line with our ongoing efforts, the Company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services.”
The downward trajectory of One97 Communications’ shares can be attributed to recent regulatory actions taken by the Reserve Bank of India (RBI) against Paytm Payments Bank. Currently, the company operates solely as a third-party UPI service provider, akin to competitors like PhonePe and Google Pay.
Over the last five days, Paytm’s share price has seen a 4.5% decrease, while it has plummeted by over 58% in the last six months. Investors have witnessed a substantial erosion of wealth, with the stock wiping out nearly 40% of their investments in the past year and 75% in the last five years.
In comparison, the benchmark Nifty 50 index has demonstrated resilience, rising by 0.8% in the last five days and over 15% in the past six months. Over the last year, the index has yielded a return of 29%, doubling investors’ money in the past five years.
