Paytm Shares Drop Following Approval of Payments Bank Winding-Up
Paytm declines after payments bank board approves winding-up of operations
Business Standard
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Shares of One 97 Communications, the parent company of Paytm, fell by 3.56% after the Reserve Bank of India canceled the banking license of Paytm Payments Bank. The bank's winding-up was approved due to regulatory violations, but Paytm's other services remain unaffected.
- 01Paytm Payments Bank's license was canceled by the Reserve Bank of India.
- 02One 97 Communications' shares dropped 3.56% following the announcement.
- 03The winding-up of the bank will have no financial impact on One 97 Communications.
- 04Paytm's other services, including the app and payment gateway, will continue to operate.
- 05The company reported a consolidated net profit of ₹225 crore in Q3 FY26.
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Shares of One 97 Communications, the parent company of Paytm, declined by 3.56% to ₹1106.25 after the Reserve Bank of India (RBI) canceled the banking license of Paytm Payments Bank (PPBL), effective April 24, 2026. The RBI cited regulatory violations and concerns over depositor interests, stating that the bank's operations were detrimental to depositors. Following this decision, the board of PPBL approved the winding-up of the bank. However, One 97 Communications clarified that it has no financial exposure to PPBL and that its investment had been fully impaired as of March 31, 2024. The company reassured stakeholders that all other services, including the Paytm app and payment gateway, will continue to function without interruption. In its latest financial report, One 97 Communications revealed a consolidated net profit of ₹225 crore for Q3 FY26, a significant recovery from a net loss of ₹208 crore in the same quarter of the previous year, with a 20.02% year-on-year increase in revenue from operations to ₹2,194 crore.
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The cancellation of the banking license and subsequent winding-up of Paytm Payments Bank could impact customers who used the bank for their financial transactions, although Paytm's other services remain operational.
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