Paytm Drops 4% as President & COO Bhavesh Gupta Resigns; Q4 Results Awaited

by | May 7, 2024 | 0 comments

On May 4, Paytm told stock exchanges that Gupta had quit the company for personal reasons.

Bhavesh Gupta will keep the position of Paytm COO and President until this month ends, after which he’ll become a company adviser. On May 6, when COO and President of Paytm announced his resignation, Paytm shares fell more than 4.5%. This was revealed in a regulatory filing over the weekend.

According to his letter of resignation, Mr. Gupta’s resignation will take effect from close of business hours on May 31st 2024 but will still work as an advisor within office CEO once he steps down from current role. He also expressed confidence about Paytm’s future while taking a career break for personal reasons, recognizing that payment has developed strong leadership in recent years in addition to financial services.

The company has formally accepted his decision by relieving him off duty on May 31st 2024 as per the filing. Paytm Money is bringing in Rakesh Singh as its new CEO while current chief executive officer Varun Sridhar is moving to chief executive officer of Paytm Services Private Limited (PSPL).

Both companies are subsidiaries under One97 Communications Ltd., which owns PayTM parent company; they enable stock broking, mutual fund investments among others wealth management products for customers using pay tm platform.

This comes just before they release their March quarter results for Fy’24 where there is expectation that regulatory restrictions imposed by Reserve bank india(rbi) on associate firm pay tm payments bank limited(ppbl) might impact them negatively.

Read Also: PSU Bank Stocks Fall on RBI’s Draft Tighter Norms

Last month lending activities driven by revenue growth helped offset some losses incurred during previous periods when other parts like margins were low due lack profitability such cases usually constituted larger portion but this time round it only accounted slightly above half what would be considered normal range because besides being profitable most lenders have not been doing well at all.

Since RBI banned PPBL so far no one knows how long will take before everything goes back normal again even though everyone hopes that everything should go back normal soon enough since still hard say when might happen therefore causing an increase in revenue and bottom line is difficult at the moment.

At 9:38 am, shares of Paytm were trading 3.8% lower at Rs 355.25 on the NSE (National Stock Exchange). The stock has lost 45% YTD while Nifty has gained close to 4% in the same period.

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