Paytm Share Fall 8%: Paytm’s parent company One 97 Communications saw sharp selling pressure in early trade after the Reserve Bank of India cancelled the banking licence of its associate entity, Paytm Payments Bank Ltd.

The stock slipped 8% to Rs 1,055.25, falling Rs 92 from its previous close of Rs 1,147.10. The fall wiped out Rs 5,879 crore in shareholder wealth within minutes of market opening, pulling the company’s market capitalisation down to Rs 67,546 crore on the BSE.

Trading activity also picked up during the decline. A total of 3.14 lakh shares changed hands, generating turnover of Rs 33.65 crore.

The RBI’s action came on April 24, after the regulator said the affairs of the bank were conducted “in a manner detrimental to the interest of the bank and its depositors.”

This is not the first regulatory setback for Paytm Payments Bank. In March 2022, RBI barred the bank from onboarding new customers. Later, in January and February 2024, the regulator imposed severe business restrictions, stopping further deposits or credit transactions in customer accounts.

For investors, the latest fall is another reminder that regulatory uncertainty remains one of the biggest overhangs for Paytm. While the company’s listed entity is One 97 Communications, market reaction shows that developments around Paytm Payments Bank continue to influence investor confidence.

The sharp intraday erosion also underlines how quickly sentiment can shift when a financial technology company faces direct regulatory action from the central bank.

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