27 Apr , 2026 By : Debdeep Gupta
Shares of One 97 Communications fell sharply in early trade on Monday after the Reserve Bank of India cancelled the licence of Paytm Payments Bank, effectively shutting the door on any revival of its banking arm.
The Paytm stock was trading at Rs 1,077, down 6.1 percent in early morning trade.
The decline comes as investors react to the final regulatory step against Paytm Payments Bank, which had already been under severe operational restrictions since January 2024. While the earlier action had halted fresh deposits and forced a gradual wind-down of operations, the latest move formally ends the entity’s ability to function as a bank.
In a statement, the company said the development does not materially impact near-term earnings, as the payments bank business had already become largely inoperative and its functions had been transitioned to a partner-led model.
However, the licence cancellation removes any residual possibility of Paytm operating as an integrated financial services platform. The company has shifted to working with third-party banks for payments, settlements and UPI operations, a structure that is typically associated with lower margins and higher dependency on partners.
From a financial perspective, the immediate earnings impact is seen as limited, given that the payments bank’s contribution had already declined significantly following regulatory curbs. But the move is viewed as a structural reset for the business, potentially capping long-term margin expansion and return ratios.
Despite today’s decline, Paytm shares have risen about 22 percent over the past one year, outperforming the Nifty 50 index, which is down around 1.3 percent during the same period.
The focus for investors will now likely shift to execution under the partner-led model, including stability in UPI market share, merchant retention, and growth in loan distribution.
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