Business
Paytm Shares Surge 5% Post Axis Bank Deal, New RBI Deadline
Paytm Shares Surge 5% Post Axis Bank Deal, New RBI Deadline
After the Indian central bank gave Paytm’s banking division extra time to shut down and the company teamed up with Axis Bank to try to keep some of its well-liked products running, the company’s shares increased 5% on Monday. The stock reached 358.35 rupees, the top trading limit.
Customers of the bank would be able to withdraw their deposits even after March 15th, according to the RBI, which has offered full support to the bank’s patrons. The banking regulator stated, answering a number of frequently asked questions about the situation, that going future, some of the clients—including those who had salary accounts at the concern—will have to choose an other bank.
The deadline extension, according to Bernstein analysts, will allow for a “smooth transition” for the transfer of Paytm Payments Bank accounts. As part of its efforts to handle the current situation, Paytm also signed up Axis Bank as a new banking partner on Friday in an effort to maintain some of its well-liked goods.
Analyst Views and Market Impact on Paytm Shares Amidst RBI Deadline Fallout
Brokerage Citi stated in a note that despite keeping its “Sell” rating and 550 rupee price objective on the stock, the company is likely to explore more of these collaborations since it sees them as “significant positives for ongoing business.”
You won’t be able to get any such credits into your Paytm Payments Bank account after March 15, 2024. To prevent difficulty, it is advised that you prepare alternate arrangements with a different bank before March 15, 2024,” the RBI stated.
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Since the RBI’s ruling against Paytm Payments Bank on January 31, which was brought about by what the central bank authorities described as continuous non-compliance with regulations, Paytm shares have dropped 53%. The stock market meltdown has reduced the value of stockholders by 255.74 billion rupees ($3.08 billion).
