Paytm’s Parent Company Faces Stock Dip Amid Resignation of CEO & MD Surinder Chawla
On Wednesday, shares of One97 Communications, the parent company of Paytm, experienced a 4% decline following the resignation of Surinder Chawla, Managing Director and CEO of Paytm Payments Bank (PPBL). One97 Communications Limited (OCL) holds a 49% stake in PPBL, making the resignation of its CEO a critical development for both the parent company and the payments bank.
Chawla’s resignation comes at a critical juncture as Paytm Payments Bank Ltd faces regulatory actions from the Reserve Bank of India (RBI). One97 Communications disclosed Chawla’s resignation in a regulatory filing, attributing it to personal reasons and a desire to explore better career prospects. Chawla is set to be relieved from PPBL effective June 26, 2024, barring any changes by mutual consent.
Having joined PPBL in January of the previous year, Chawla’s tenure coincided with the payments bank receiving approval from the RBI. However, the company faced significant challenges when, on January 31, the RBI directed PPBL to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, with a subsequent extension to March 15. This directive came in response to persistent non-compliance and material supervisory concerns raised by the central bank.
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