Shares of One97 Communications, the parent company of fintech firm Paytm dropped on Wednesday, April 10, a day after Surinder Chawla, CEO and MD of Paytm Payments Bank stepped down from his position. The One97 Communications stock slipped as much as over five per cent to the day’s low of Rs 388 on NSE, extending the fall for the third session.
One 97 Communications in its regulatory filing dated April 9 said that it has been informed by its associate entity, Paytm Payments Bank Limited (PPBL), that “Surinder Chawla, Managing Director and CEO of PPBL has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects”. He will be relieved from PPBL on June 26, “unless changed by mutual consent”.
“As informed earlier, nearly all agreements between the company and PPBL have been terminated as per our disclosure on March 1, 2024, and the board of PPBL has been reconstituted with five independent directors including an Independent Chairperson, and no nominees from the Company,” said the Paytm parent company.
The company said it continues to collaborate with banking partners to “enhance our merchant acquiring and UPI services”.
Paytm Payments Bank hasn’t yet disclosed who will replace Chawla, who joined the Paytm Payments Bank in February last year.
In February, Paytm’s Founder and CEO, Vijay Shekhar Sharma, stepped down as Non-Executive Chairman and Board Member of PPBL, after the Reserve Bank of India’s (RBI) ban on the bank’s operations.
In addition, as of Q4FY24, FII/FPI have decreased holdings from 63.72 per cent to 60.41 per cent.
