Shares of Paytm saw a rise of over 4 percent on March 1st following the approval from the fintech’s board to discontinue several inter-company agreements with its associate entity, Paytm Payments Bank Limited (PPBL).
As of 9:25 am, Paytm shares were trading nearly 4 percent higher at Rs 418.50 on the National Stock Exchange (NSE). Despite this increase, the stock has experienced a decline of approximately 35 percent since the beginning of the year, whereas the Nifty has recorded a growth of nearly 2 percent during the same period.
In a regulatory filing, Paytm stated that the company and its associate PPBL have implemented additional measures to bolster the independent operations of PPBL. This includes the mutual agreement to terminate various inter-company agreements and simplify the Shareholders Agreement (SHA) to ensure the governance of PPBL remains independent of its shareholders. The approval for termination of agreements and amendment of SHA was granted by the board of Paytm’s parent company, One 97 Communications Limited, on March 1, 2024.
Following the RBI’s crackdown on Paytm Payments Bank on January 31st, Paytm faced setbacks. However, the company announced plans to establish new partnerships with other banks and implement measures to continue providing services to its customers and merchants.
Despite these challenges, Paytm assured that its services, including the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines, will remain operational without interruption.
