Paytm shares tank nearly 13% after RBI asked Paytm Payments Bank to stop opening new accounts

New Delhi: Shares of One97 Communications Ltd, the parent firm of Paytm, on Monday tumbled nearly 13 per cent after the RBI asked Vijay Shekhar Sharma-promoted Paytm Payments Bank to stop opening new accounts amid "material supervisory concerns" observed in the bank.

The stock tanked 14.52 per cent to Rs 662.25 -- the lowest since its listing -- during the day on BSE. It finally settled at Rs 675.35, lower by 12.84 per cent.

On NSE, it tumbled 12.21 per cent to settle at Rs 680.40.

The company's market valuation also plunged by Rs 6,429.92 crore to Rs 43,798.08 crore on BSE.

In volume terms, 7.53 lakh shares were traded on BSE and over 1.51 crore on NSE.

This is the third time that Paytm Payments Bank is facing action from the central bank since its inception in May 2017. It has been prohibited from opening new accounts for the second time.

"Reserve Bank of India has, in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers," the central bank said in a statement on Friday.

Sharma holds 51 per cent stake in Paytm Payments Bank (PPBL), while the remaining 49 per cent is held by Paytm.

The bank has also been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.

"Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors. This action is based on certain material supervisory concerns observed in the bank," it said.

The stock, which got listed in November 2021, has tumbled 68.58 per cent from its issue price of Rs 2,150.