Paytm founder and chief executive officer Vijay Shekhar Sharma on Thursday said the company will only work with other banks and not the Paytm Payments Bank.
“Now onwards, will only work with other banks & not Paytm Payments Bank. We are overwhelmed by the support we have received from large banks in the country,” Sharma said in a meeting with investors a day after the Reserve Bank of India stopped Paytm Payments Bank from accepting deposits after February 29.
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“Co’s marketing & financial services business are not affected due to RBI directions. Cannot foresee what we can & cannot see; RBI has not sent us any details on the action,” Sharma added.
Sharma’s remark comes in wake of Paytm witnessing its stock tumble by 20 per cent in opening trade after the RBI curbs. The stock fell to a six-week low of 609 rupees, erasing around $1.2 billion in value from the company also known as One 97 Communications.
The stock was down 20%, at the bottom of an exchange-imposed trading band, marking its worst day since listing in 2021.
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According to a Reuters report, Sharma who owns a 19.4% stake in the company, lost about $233 million on Thursday as the shares cratered. He owns 51% of Paytm Payments Bank.
Paytm, competing with likes of Walmart’s PhonePe and Google’s GPay, lets users transfer funds, pay bills and maintain the digital wallets used across India to pay for everything from restaurant bills to vegetables.
Sharma had launched Paytm two decades ago and rose to fame after ride-hailing firm Uber made Paytm a quick payment option in India. Its use swelled in 2016 after the Modi government demonetised ₹500 and ₹1,000 denomination notes, boosting digital payments in the country.
Paytm counts Japan’s SoftBank and China’s Ant Financial among its early investors. Over the past year, SoftBank has reduced its Paytm stake, while Warren Buffett’s Berkshire Hathaway and China’s Alibaba Group have exited the company.