Paytm Stocks Drop 4% as Payments Bank CEO Surinder Chawla Resigns

Paytm's share price has been on a downward spiral following regulatory action from the Reserve Bank of India (RBI) against its banking arm. The stock of One97 Communication, Paytm's parent company, plummeted 4% to an intra-day low of Rs 388 as Paytm Payments Bank MD & CEO Surinder Chawla tendered his resignation.

Chawla cited personal reasons and a desire to explore better career prospects for his resignation, which will be effective from June 26. The company stated in an exchange filing that most agreements between One97 Communication and Paytm Payments Bank Limited (PPBL) had been terminated earlier, in line with ongoing efforts to enhance merchant acquiring and UPI services.

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Shares of One97 Communications have been in free fall since RBI's action against Paytm Payments Bank, leading the company to operate solely as a third-party UPI service provider. This transition aligns it with competitors like PhonePe and Google Pay.

Over the past five days, Paytm's share price has dropped by 4.5%, and in the last six months, it has plummeted by over 58%. Investors have seen a substantial erosion of wealth, with the stock wiping out nearly 40% of their investment in the past year and 75% in the last five years.

In contrast, the benchmark Nifty 50 index has shown resilience, rising by 0.8% in the last five days and over 15% in the past six months. Over the last year, the Nifty 50 has provided a return of 29%, doubling investors' money in the past five years.

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