Financial services giant Paytm has refuted reports suggesting discussions with potential investors for the sale of its wallet business. This follows the Reserve Bank of India’s (RBI) ban on Paytm Payments Bank, with earlier reports hinting at HDFC Bank and Jio Financial Services as potential acquirers. A Paytm Payments Bank spokesperson stated, “We do not comment on any market speculation. We completely abide by the direction of the regulator, and the team’s effort is to ensure a smooth customer experience with the products offered by the Paytm Payments Bank Ltd (PPBL).”
Founder and CEO Vijay Shekhar Sharma assured employees that there would be no layoffs, emphasizing ongoing talks with the RBI and exploring partnership options with other banks. Addressing the virtual town hall, Sharma stated, “We will figure out everything soon. We will reach out to the RBI to see what can be done.”
Paytm shares experienced a 10% lower circuit on the BSE, trading at Rs 438.35 in response to the RBI’s directive to Paytm Payments Bank.
Madhur Deora, President and Group CFO at Paytm, clarified that the fintech company and its associate bank are not structurally the same. “There may be this impression that Paytm and Paytm Payment Bank is one, but by design and by structure, it is not and it cannot be. First, it is an associate company, and second is not an associate company in the sense that it is some Bank,” Deora explained. He emphasized the importance of adhering to banking governance, including an independent management team and dedicated compliance and risk teams.
