Another blow to Paytm Payments Bank, CEO Surinder Chawla resigns, shares fall

Paytm Payments Bank: Surinder Chawla, managing director and chief executive officer of the troubled payments company Paytm Payments Bank, has resigned from the company. Chawla's resignation comes at a time when Paytm Payments Bank Ltd (PPBL) is facing strict prohibitory action from banking regulator Reserve Bank of India (RBI). One97 Communications, the company that operates the Paytm brand, informed the stock market about this resignation on Tuesday.

Last day will be on 26th June

The company said, “Surinder Chawla, Managing Director and Chief Executive Officer of PPBL, resigned on April 8, 2024 for personal reasons and to explore better career prospects. He will be relieved from PPBL after working hours on June 26, 2024, unless there is any change by mutual consent. Chawla had joined PPBL in January last year. But due to repeated violations of regulatory norms during his tenure, PPBL recently came under the strictures of RBI.

RBI had imposed restrictions on January 31

Earlier on February 26, Vijay Shekhar Sharma had resigned from the board of Paytm Payment Bank. On January 31, RBI had imposed major business restrictions on Paytm Payment Bank Limited. RBI had barred payments banks from taking fresh deposits and doing credit transactions after February 29. After this, on 16 February this deadline was extended till 15 March.

Stock decline

Paytm's shares fell significantly after RBI restrictions. There was a decline in this stock on Tuesday also. The company's shares closed at Rs 404.30, down 1.95 per cent or Rs 8.05. 52 week high of this share is Rs 998.30. Whereas, 52 week low is Rs 318.35. The market cap of the company closed at Rs 25,689.78 crore on BSE on Tuesday.