Following the resignation of Surinder Chawla, the CEO and Managing Director of Paytm Payments Bank, One97 Communications, the business that owns the Paytm brand, saw a 4% decrease in its share price on Wednesday.
The BSE and NSE saw a 4% decline in the stock, to Rs 388. During the morning trade, the company’s market valuation decreased by Rs 463.84 crore.
Chawla’s resignation coincides with the RBI, the banking regulator, taking prohibitory proceedings against Paytm Payments Bank Ltd.
“On April 8, 2024, Surinder Chawla, the Managing Director and CEO of PPBL, submitted his resignation due to personal reasons and to pursue opportunities for advancement in his career. Unless there is mutual agreement to the contrary, he will be released from PPBL as of June 26, 2024, at the latest, One97 Communications stated in a regulatory filing on Tuesday.
Chawla joined PPBL in January of last year following the Reserve Bank of India’s clearance of the payments bank.
The RBI ordered Paytm Payments Bank (PPBL) to cease taking deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29 as part of a significant action against the bank on January 31. Subsequently, the deadline was extended to March 15.
The central bank had stated in a statement that the directive was in response to ongoing serious supervisory concerns and chronic non-compliance.
PPBL is owned by One97 Communications Limited (OCL) to the tune of 49%.
