Paytm – NPCI has given permission to add new UPI users. Paytm’s parent company One 97 Communications Limited gave this information on October 22.
After the approval to add UPI users, Paytm’s stock rose by about 7% today. It closed at Rs 738. Yesterday it closed down by 5%.
RBI had imposed a ban for not following the rules
Earlier this year, RBI had banned Paytm Payments Bank from adding new UPI users on the app. This ban was imposed due to non-compliance of the rules.
Paytm’s UPI service was powered by Paytm Payments Bank and after RBI’s action, the company had to partner with other banks to continue the UPI service.
- The parent company is One97 Communications Limited.
- It also has an associate bank, Paytm Payment Bank Limited.
- Services are available on the app through Paytm Payment Bank.
- One97 Communications has a 49% stake in Paytm Payment Bank.
Vijay Shekhar Sharma had demanded the lifting of the ban
Paytm founder Vijay Shekhar Sharma had asked NPCI to remove these restrictions on August 1. NPCI’s approval will help Paytm increase its user base.
Paytm earns ₹930 crore net profit in second quarter
Paytm’s parent company One 97 Communications has reported a net profit of ₹ 930 crore in the second quarter of FY 2024-25, as against a loss of ₹ 290.5 crore in the same period last year. The company’s net profit saw a one-time contribution of ₹ 1,345 crore.
Excluding the amount received from the sale of the movie ticketing business, the company has incurred a loss of ₹ 415 crore in this quarter, which is more than the loss recorded in the same quarter last year. The company released the results for Q2FY25 i.e. July-September on 22 October.
Operational revenue declined 34% year-on-year
The company’s operational revenue in Q2FY25 declined 34% year-on-year to ₹1,660 crore from ₹2,519 crore.
Rs 1,345 crore received from selling movie ticketing business
Paytm recently sold its movie ticketing business to Zomato. Due to the Rs 1,345 crore received from this, the company has made a net profit of Rs 930 crore.
Cash transactions were approved by the boards of Zomato and Paytm on August 21 (Wednesday). By selling it, Paytm wants to focus on its core financial services.
Shares fell by 5.78%
After the announcement of the results, Paytm’s stock fell by 5.78%. It closed at Rs 684. In the last month, this stock has given a return of 4.98% and in 6 months, it has given a return of 81.10%. However, in the last 1 year, Paytm’s stock has given a negative return of 25.95%.
Paytm was started in 2009
Paytm’s parent company One97 Communications launched the Paytm payment app in August 2009. Its founder is Vijay Shekhar Sharma. Currently, it has more than 30 crore users in the country. Paytm’s market cap is around Rs 28 thousand crore.
Paytm is trending on Google after getting approval to add new UPI users
The company got approval to add new UPI users, due to which the company’s stock has risen by 7%. Due to this news, it is being searched continuously on Google.
