Fintech
Paytm shares in focus today as fintech clarifies recent reports; key details
One 97 Communications Ltd (Payment) Shares were in focus Friday morning after the Vijay Shekhar Sharma-led firm denied reports that a key financial partner, Aditya Birla Finance, had invoked loan guarantees. First reported by ET, there were several subsequent articles by other publications, including Moneycontrol, which Paytm said were materially incorrect.
“We respectfully ask the media to refrain from inaccurate reporting and make necessary changes to their reporting to reflect our clarifications and ensure factual integrity,” he said.
Paytm, whose shares have fallen 63% in the last six months, said it acts as a loan distributor and does not provide a First Loss Default Guarantee (FLDG) or other loan guarantees to lending partners.
“Therefore, the article’s claims about invoking loan guarantees due to repayment defaults by our lender partners are inaccurate. We continue to partner with multiple banks and NBFCs, ensuring a diverse lending partnership network by strictly adhering to the risk and compliance. Our personal loan distribution business has not been disrupted and has continued to grow effectively,” Paytm said.
Earlier this year, the RBI barred a Paytm branch from accepting further deposits, recharges or credit transactions in its wallet or managed accounts. Subsequently, Paytm received NPCI approval to become a third-party app provider for UPI. Four banks, namely Axis Bank, HDFC Bank, State Bank of India and YES Bank, act as PSP (payment system provider) banks for Paytm.
Paytm said its merchant lending business resumed at the end of March 2024 following the completion of the ‘@paytm’ management transition.
“Regarding media reports on recent employee departures, we would like to highlight that the company has a strong senior leadership structure with over 50 senior vice presidents, supported by a strong management and governance structure. The leaders within this structure oversee operations and reviews across the business, product and technology,” Paytm said.
The online payments platform said all recent changes made to Paytm have been aligned with pre-approved succession plans discussed with the Board in previous financial years. As part of its annual performance evaluation, Paytm said it will continue to periodically evaluate the talent pool in the context of future plans, which will involve the transition of certain roles and employees.
“However, it also represents an exciting opportunity to reward our high-performing talent to take on leadership roles and welcome new executives who will contribute to the next wave of growth. We will continue to foster a dynamic environment that embraces change and empowers individuals to contribute to our continued success,” he said.
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