Paytm Shares Hit 10% Lower Circuit After RBI's Comments On Non-Compliance
On Jan. 31, the central bank restricted Paytm Payments Bank from taking further deposits and credit from Feb. 29 onwards.
Shares of Paytm operator One 97 Communications Ltd. hit the 10% lower circuit on Thursday after RBI Deputy Governor Swaminathan Janakiraman said supervisory action was required on the Paytm Payments Bank to safeguard consumer interests.
On Jan. 31, the central bank restricted Paytm Payments Bank from taking further deposits and credit from Feb. 29 onwards, due to persistent non-compliance of norms.
Shares of One 97 Communications Ltd. hit 10% lower circuit, the lowest level since Feb. 6, before paring losses to trade 7.96% lower at 12:35 p.m. This compares to a 0.6% decline in the NSE Nifty 50.
The stock has declined 32.40% in 12 months. Total traded volume so far in the day stood at 3.1 times its 30-day average. The relative strength index was at 26.91, indicating the stock is oversold.
Of the 15 analysts tracking the company, six maintain a 'buy' rating, four recommend a 'hold,' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 62.2%.
