Vijay Shekhar Sharma, the founder and CEO of Paytm, has tendered his resignation from the role of part-time non-executive chairman and board member of Paytm Payments Bank Limited (PPBL). This decision comes nearly a month subsequent to the Reserve Bank of India (RBI) initiated regulatory measures against the bank.
In response to this development, One97 Communications Limited, the parent company of Paytm, has disclosed that PPBL has undergone a restructuring of its board. They have further elucidated that Sharma's resignation is intended to facilitate this transitional phase.
In light of these actions, brokerage firm Macquarie has issued a statement, suggesting that Sharma's move may be an attempt to salvage some value from Paytm Payments Bank by signaling to regulators his willingness to relinquish control of PPBL.
Macquarie continued to speculate on the future prospects of PPBL, asserting that its survival hinges on the possibility of the RBI granting leniency for its regular banking operations. Additionally, the brokerage firm opined that if PPBL is granted autonomy to function as an independent entity, it could lead to favorable outcomes for Paytm, potentially enhancing its profitability.
Despite these analyses, Macquarie has maintained an "underperform" rating on the Paytm stock, coupled with a target price of Rs 275, a downgrade that occurred just two weeks prior.
Currently, the consensus rating among 13 analysts covering Paytm is "hold," with at least two brokerages opting to cease coverage of the stock entirely.
At 10:30 am, Paytm shares exhibited a 1.40 percent increase on the Bombay Stock Exchange (BSE), trading at Rs 434.10 each.
