Paytm's Market Cap dives $1 billion in Single Day: Read What happens

Saying it is a black day for One 97 Communications Ltd., the parent company of payments platform Paytm this is the biggest fall in share prices in two years.

Paytm's Market Cap dives $1 billion in Single Day: Read What happens

New Delhi: The Financial Tech Giant, Paytm nowadays facing many issues back to back. Recently the company has seen a big loss after its shares fell about 1 billion dollars as per market value in a single day.

Saying as a bad day for One 97 Communications Ltd., the parent company of payments platform Paytm this is the biggest fall in share prices in two years has been suffered by pay tech mammoth. On Thursday, it was reported that the shares dropped by 19 percent, At the end of the day, the shares plunged by 18,74% to close at Rs. 660.70 on the National Stock exchange. 

The next deterioration occurred when the company announced that it would go slow on loans less than Rs. 50000 and would focus on high-ticket loans. According to sources, the slump in the share prices erased over 1 billion dollars worth of market value. 

Read Also : NBCC Signs MoU with Telangana High Court

The estimations are prevailing a constant drop in Paytm’s operating profit to 20 percent for the 2024-2025 fiscal year. Approximately, 75 percent of loans of paytm were under Rs. 50000.

Paytm is an indian multinational financial technology company that broadly enables payment through mobile app with attached phone number to respective account of an individual.

Read Also : PM Modi inaugurates NBCC built Indian Institute of Skills, Kanpur

IMPACT OF RBI DIRECTIVE STRATEGY ON LENDING FIRMS:

Currently, RBI has raised the risk weights for banks and NBFCs by 25 percentage points. This was intended to tighten norms for personal loans and credit cards, to cut the rising demand for loan growth that may contribute to inflation. 

On the other hand Paytm has seven NBFCs as partners for lending. The recalibration of loan disbursals below 50000 is encapsulated to gain better strategy for retailers and merchants. 

It would on the other hand expand its credit distribution business. This recent macroeconomic development and guidance would stimulate the credit distribution policy and enhance small enterprises' loan business.

Read Also : NPCC to Build New Kendriya Vidyalaya Schools in Andhra Pradesh, Telangana, and Kerala