Paytm shares jump 5%, day after Vijay Shekhar Sharma's resignation from Payments Bank

In a flurry of market activity, Paytm shares witnessed a significant surge today, climbing 5% on the heels of Vijay Shekhar Sharma's resignation from the Paytm Payments Bank. The fintech giant's stock soared 4.98% to ₹449.30 on the BSE and 4.99% to ₹449.50 on the NSE, showcasing bullish investor sentiment despite recent uncertainties.

One97 Communications Ltd, the parent company of the Paytm brand, experienced a remarkable rally, with its shares hitting the highest trading permissible limit for the day. The stock surged 4.98% to ₹449.30 on the BSE, reaching its upper circuit limit, after initially displaying volatile trends with a dip to ₹413.55. Similarly, at the NSE, shares surged 4.99% to ₹449.50, defying a weak start.

This surge follows Vijay Shekhar Sharma's decision to step down as the part-time non-executive Chairman of Paytm Payments Bank Limited, prompting a reshuffle in the bank's board. The regulatory environment, particularly the Reserve Bank of India's recent actions against the Paytm Payments Bank due to compliance issues, adds significance to these developments.

In a regulatory filing on Monday, One97 Communications revealed the reconstitution of PPBL's Board of Directors, appointing notable figures such as former Central Bank of India Chairman Srinivasan Sridhar and retired IAS officer Debendranath Sarangi, among others, as independent directors.

These strategic changes come amidst regulatory scrutiny and operational challenges faced by the Paytm Payments Bank, with the RBI's recent directive prohibiting the bank from accepting fresh deposits or top-ups beyond February 29, later extended to March 15.

As the market reacts to these developments, investors are closely monitoring the implications of Vijay Shekhar Sharma's departure and the subsequent board restructuring on Paytm's future trajectory. With Paytm being a key player in India's burgeoning fintech landscape, the outcome of these strategic maneuvers will undoubtedly reverberate across the financial sector.

Stay tuned for further updates as the situation unfolds.