Paytm hits a new low

The sad saga for Paytm simply does not end. The stock opens almost 12% lower at Rs.684 and the stock went on to hit a new 52-week low at Rs.672.10.

The stock tanked to a new low because the RBI directed Paytm Payments Bank (PPBL), its associate company, to temporarily halt onboarding of new customers. RBI has asked the company to undertake an IT audit.

RBI has observed certain material supervisory concerns at PPBL.

The bank said that it is taking immediate steps to comply with RBI directions, including appointment of a reputed external auditor to conduct a comprehensive system audit of its IT systems.

Though analysts say that this will not have a material impact, the effect on the brand loyalty and reputation is huge, especially when it is already carrying that IPO fallout impact.