Paytm Writes Down Entire Investment Of Rs 227 Crore In Payments Bank

One97 Communications Ltd. has written down the value of its entire investment worth Rs 227 crore in Paytm Payments Bank Ltd., according to an exchange filing on Wednesday. This step was prompted by the Reserve Bank of India's clampdown on the bank on Jan. 31, which impacted its wallet and banking services.

It has also recorded an impairment provision of Rs 227.1 crore, representing the carrying value of its investment in PPBL.

Paytm's net loss widened quarter-on-quarter to Rs 551 crore in the fourth quarter of the financial year 2024. Its Ebitda loss also stood at Rs 223 crore in comparison to Rs 157 crore in the previous quarter.

The company reported that the RBI's crackdown on payments banks would have a full financial impact in Q1 FY25.

It expects to generate Rs 1,500 to Rs 1,600 crore in Q1 FY25 revenue. But due to the disruptions in operating metrics, it expects to have an incremental Ebitda impact of Rs 100–150 crore.

After the RBI's clampdown, Paytm Payments Bank and OCL, on March 1, agreed to discontinue various inter-company agreements, according to an exchange filing.

The new bank board consisted of four new appointments, including Arvind Kumar Jain, independent director and former ED of Punjab and Sind Bank, and Surinder Chawla, managing director and chief executive officer of Paytm Payments Bank. Chawla stepped down on April 9.

The National Payments Corp. of India also granted Paytm a TPAP license for UPI transactions under a multi-bank model, and Yes Bank became the merchant acquiring bank for the company.