Paytm\u2019s shares plunged 20 per cent for a second day, continuing a slump triggered by India\u2019s central bank banning much of its business.<\/p>\n
Regulatory troubles for the digital payments giant are mounting after the Reserve Bank of India ordered its unit Paytm Payments Bank Ltd. to stop many of its activities, citing persistent non-compliance and supervisory concerns. A conference call held after market hours on Thursday failed to inspire investor confidence. At least five brokerages, including JPMorgan Chase & Co. and Citigroup Inc., downgraded the stock to sell.<\/p>\n
The two-day decline has erased over $2 billion in market value in the company that counts Alibaba\u2019s Antfin Singapore Holding Pte. and SoftBank Group Corp. among its investors.<\/p>\n
\u201cThe order materially impacts Paytm\u2019s core payments business at 59 per cent of revenue,\u201d JPMorgan analysts including Ankur Rudra wrote in a note. While this is likely to have less impact on its other businesses, it dilutes the network effects of Paytm\u2019s \u201cmerchant-consumer\u201d ecosystem and brand credibility over time, unless the company can successfully migrate its business to other banks, they said.<\/p>\n
Paytm is now down about 77 per cent from its initial public offering in 2021. The company said in the recent conference call that operations should be back to \u201cfully normal\u201d by early March and it is accelerating plans to partner with other banks.<\/p>\n","protected":false},"excerpt":{"rendered":"
Paytm\u2019s shares plunged 20 per cent for a second day, continuing a slump triggered by India\u2019s central bank banning much of its business. Regulatory troubles for the digital payments giant are mounting after the Reserve Bank of India ordered its unit Paytm Payments Bank Ltd. to stop many of its activities, citing persistent non-compliance and supervisory concerns. A conference call held after market hours on Thursday failed to inspire investor confidence. At least five brokerages, including JPMorgan Chase & Co. and Citigroup Inc., downgraded the stock to sell. The two-day decline has erased over $2 billion in market value in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-800862","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/800862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=800862"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/800862\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=800862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=800862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=800862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}