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Paytm share price falls nearly 3% after payments bank chief quits
Surinder Chawla cited personal reasons as the reason for his resignation and said that he will be relieved from his duties on June 26.
Paytm share price: Shares of Paytm fell nearly 3 per cent today (April 10) after Surinder Chawla stepped down as the Paytm Payments Bank managing director and chief executive. Surinder Chawla cited personal reasons as the reason for his resignation and said that he will be relieved from his duties on June 26. Paytm parent One 97 Communications said in the release that "nearly all agreements between the company and PPBL have been terminated".
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Earlier, Paytm founder Vijay Shekhar Sharma resigned from the board of PPBL to enable the reconstitution of the board.
More on Paytm crisis
The Reserve Bank of India (RBI) imposed business restrictions on PPBL which included stop on accepting fresh deposits and doing credit transactions after February 29. This deadline was later extended to March 15. Ahead of this deadline, the National Payments Corporation of India (NPCI) granted approval to Paytm to participate in UPI services as a third-party application provider (TPAP) as per the multi-bank model.
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Paytm's UPI market share falls
Paytm's unified payments interface (UPI) market share dropped to 9 per cent in March. This is its lowest level in the last four years, as per data available on the NPCI website. In February, the market share dropped to 11 per cent from January following RBI's restrictions on PPBL.
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BofA resumes Paytm coverage
Bank of America (BofA) resumed its coverage on Paytm stock with an 'underperform' rating. It set a target price of ₹400- 1 per cent downside from the April 9 closing price of ₹404.50 on the NSE. The brokerage said that Paytm is expected to witness a gradual growth in its lending business.
