Shares of Paytm's parent company, One97 Communications Limited, fell 20% in early trading after the Reserve Bank of India (RBI) barred the fintech giant's lending business from any deposits or credit transactions in customer accounts. This follows a 20% drop the previous day. In response, brokerage firm Jefferies downgraded Paytm to 'underperform' and slashed its price target for the stock. Paytm's banking arm is working with the regulator to address concerns. The RBI's decision has faced criticism even from bankers and analysts.
Paytm Shares Plunge 20% to Hit 52-Week Low Amid Payment Bank Troubles
Paytm's parent company, One97 Communications, saw its shares plummet 20% after the RBI barred the fintech giant's lending business from any deposits or credit transactions.