Paytm Shares End 20% Lower After RBI's Payments Bank Crackdown
Paytm shares plunge 20% as RBI blocks fresh deposits in payments bank due to non-compliance and supervisory concerns.
Shares of One97 Communications Ltd. ended 20% lower on Thursday after being locked in the lower circuit throughout the session.
The crackdown came as the regulator found persistent non-compliance and major supervisory concerns at the payments bank.
One97, in an exchange filing, said that from now on it will be working only with other banks and not its own payments bank.
Paytm's was locked in 20% to Rs 609 apiece, the lowest level since Dec 23, on Thursday. The scrip has risen 16.25% in the last twelve months.
The total traded volume so far in the day stood at 0.3 times its 30-day average. The relative strength index was at 30.16.
Of the 14 analysts tracking the company, seven maintain a 'buy' rating, four recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies an upside of 39.1%.
