India's Paytm plunges another 20% after cenbank clampdown on payments bank
BENGALURU: Shares of Indian digital payments firm Paytm tumbled 20% on Friday after a central bank clampdown on its payments bank continued to weigh on investor sentiment despite the company's attempts to assuage fears of a hit to its business.
Paytm shares were at 487 rupees, their lowest in more than a year, at the bottom of an exchange-imposed trading band for the second day in a row. Shares of the company are now down 36% so far this week.
"Your favourite app is working, will keep working beyond 29 February as usual," Paytm CEO Vijay Shekhar Sharma said in a post on X on Friday, in the company's latest attempt to calm the nerves of its app users.
"For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance," Sharma added.
The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular digital wallets from March, raising worries over revenues from the company's main payments business.