Paytm's shares surged 5 per cent on Tuesday after Vijay Shekhar Sharma resigned from Paytm Payments Bank Ltd.'s board
Paytm's shares witnessed a 5 per cent surge on Tuesday during morning trading hours. This rise came after the banking arm of the fintech firm, Paytm Payments Bank Ltd. (PPBL), announced the resignation of Vijay Shekhar Sharma from its board and the position of chairman.
The shares of the beleaguered fintech firm have been subjected to increased scrutiny following the issuance of a notice by the Reserve Bank of India (RBI). The notice indicated a report by external auditors, highlighting persistent non-compliance issues and ongoing material supervisory concerns within the bank.
At 9:30 am, the shares of One97 Communications Ltd (Paytm) were trading at Rs 437 price level, up by more than 2 per cent or 9 points on the National Stock Exchange.
Despite the uncertain fate of Paytm's lending arm, investors have shown confidence in the parent company, One97 Communications, as the stock has hit the upper circuit multiple times, if not consecutively.
"One 97 Communications Ltd (OCL) would like to update that its associate, Paytm Payments Bank Limited (PPBL), has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Shri Srinivasan Sridhar, retired IAS officer Shri Debendranath Sarangi, former Executive Director of Bank of Baroda Shri Ashok Kumar Garg, and Retd. IAS Smt Rajni Sekhri Sibal. They have recently joined as Independent Directors," the company stated in an exchange filing.
On a year-to-date basis, OCL's shares on the NSE have plummeted by over 30 per cent or 208 points.
The future of the fintech company remains uncertain as its competitors gain momentum in the wake of prohibitions, casting doubt on Paytm's future trajectory.