Vijay Shekhar Sharma, the founder and CEO of Paytm, acknowledged that the company should have handled its responsibilities more effectively in light of the Reserve Bank of India’s order on January 31, which directed Paytm Payments Bank to suspend its banking services.
Speaking recently at an event in New Delhi, Sharma expressed his personal and emotional sentiments, comparing the company to a daughter who faced an accident and is currently in the ICU.
“The company for me is like a daughter…we were getting mature, going towards full profitability, generating free cash and so on. I saw it as a daughter on the way for an important entrance test, but met with an accident, and in a way is in ICU right now. That was the feeling from a personal, emotional (point of view),” Sharma was quoted as saying by ET.
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“At a professional level, I would say we should have done better, there is no secret about it. We should have understood better…and we had responsibilities (that) we should have fulfilled (in a) much better (way) …we learnt the lesson and are much better (now than before),” Sharma added.
Following the RBI’s action, Paytm Payments Bank’s wallets business, one of its most popular offerings, came to a halt. RBI data revealed a substantial decrease in fund transfer transactions in the bank’s prepaid payment instruments business during May compared to March and December 2023. The RBI order restricted the usage of Paytm Payments Bank accounts to pay-out transactions only, and users were unable to load money into them after March 15.
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One 97 Communications Ltd, Paytm’s parent company, reported a significant increase in net loss and a slight decline in operating revenue for the January-March period, largely due to the impact of regulatory action on Paytm Payments Bank.
The company’s management provided guidance for the April-June 2024 period, indicating potential revenue in the range of Rs 1,500-1,600 crore and a loss of Rs 500-600 crore before interest, taxes, depreciation, amortization, and employee stock option costs.
Paytm Payments Bank is currently in a dispute with its auditor, JC Bhalla & Co, which has raised concerns about the viability of the business. The RBI’s action has also had a negative impact on One 97 Communications’ stock price, which has declined by 40% since January 31.
Speaking recently at an event in New Delhi, Sharma expressed his personal and emotional sentiments, comparing the company to a daughter who faced an accident and is currently in the ICU.
“The company for me is like a daughter…we were getting mature, going towards full profitability, generating free cash and so on. I saw it as a daughter on the way for an important entrance test, but met with an accident, and in a way is in ICU right now. That was the feeling from a personal, emotional (point of view),” Sharma was quoted as saying by ET.
Also Read | Reliance Industries market cap crosses Rs 21 lakh crore! Here’s what brokerages have to say about country’s most valued firm by m-cap
“At a professional level, I would say we should have done better, there is no secret about it. We should have understood better…and we had responsibilities (that) we should have fulfilled (in a) much better (way) …we learnt the lesson and are much better (now than before),” Sharma added.
Following the RBI’s action, Paytm Payments Bank’s wallets business, one of its most popular offerings, came to a halt. RBI data revealed a substantial decrease in fund transfer transactions in the bank’s prepaid payment instruments business during May compared to March and December 2023. The RBI order restricted the usage of Paytm Payments Bank accounts to pay-out transactions only, and users were unable to load money into them after March 15.
Also Read | Banks put on alert! RBI warns banks of ‘credible threat intelligence’ regarding cyberattacks
One 97 Communications Ltd, Paytm’s parent company, reported a significant increase in net loss and a slight decline in operating revenue for the January-March period, largely due to the impact of regulatory action on Paytm Payments Bank.
The company’s management provided guidance for the April-June 2024 period, indicating potential revenue in the range of Rs 1,500-1,600 crore and a loss of Rs 500-600 crore before interest, taxes, depreciation, amortization, and employee stock option costs.
Paytm Payments Bank is currently in a dispute with its auditor, JC Bhalla & Co, which has raised concerns about the viability of the business. The RBI’s action has also had a negative impact on One 97 Communications’ stock price, which has declined by 40% since January 31.
