Paytm share price hits 20% lower circuit after RBI’s restrictions on Paytm Payments Bank
- Paytm share price today opened downside and touched lower circuit within a few minutes of stock market's opening bell.
Stock market today: Following the Reserve Bank of India's restrictions on Paytm Payments Bank Limited (PPBL), Paytm's share price on February 1 witnessed huge selling pressure. Paytm shares opened lower at ₹608.80 apiece on BSE and touched a 20 per cent lower circuit within a few minutes of the stock market's opening bell.
According to stock market experts, Paytm shares are under selloff pressure due to the RBI's restrictions on PPBL. They said that the restrictions may impact the lending business of the fintech company, which generates around one-fifth of its net revenue. The stock may continue to remain under pressure till the Paytm management makes an official announcement about the impact of the RBI's restriction on its business, they noted.
Why Paytm share price is nosediving
On why Paytm share price crashed on Budget 2024 date, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Paytm share price is under selloff heat as the Reserve Bank of India has imposed restrictions on Paytm Payments Bank. This is expected to impact the lending business of Paytm, which generates around 20 percent of the fintech company's net revenue.”
Paytm share price target
Expecting further weakness in Paytm shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Paytm share price is looking weak on chart pattern and it may become further weak if breaks down below its current crucial support placed at ₹590 to ₹600 apiece levels. Those who have Paytm shares in the stock portfolio should hold the scrip maintaining stop loss at ₹545 apiece level.”
Paytm faces compliance issues
The RBI on January 31 imposed restrictions on PPBL, following a system audit report and subsequent compliance validation report of external auditors.
PPBL is barred from accepting deposits or top-ups in any customer account, wallets or FASTags after February 29 under section 35A of the Banking Regulation Act, 1949.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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