'Khatam, Tata, Bye, Bye': Netizens share hilarious memes as Paytm stock crashes 20% after RBI's action

Paytm became top trending topic on X platform on Thursday as the fintech firm's stock crashed a whopping 20% post Reserve Bank of India's move to ask for halting of business at Paytm Payments Bank sparking fears of hits to the company’s profitability and reputation.

Paytm’s stock fell to a six-week low of Rs 609, erasing around $1.2 billion in value from the company, also known as One 97 Communications Ltd. The stock was at an exchange-imposed lower circuit.

RBI on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular wallets from March, raising worries that the move could erode revenue from the company’s main payments business.

Paytm said it will take steps immediately to comply with the RBI’s directions, and that it expects a worst-case impact of up to Rs 500 crore to its annual earnings before interest, tax, depreciation and amortisation (EBITDA).

One 97 will cease working with Paytm Payments Bank and start working only with other banks, it added.

Jefferies double downgraded Paytm’s stock to “underperform” after the RBI’s move and slashed its target price to Rs 500 from Rs 1,050, saying regulatory and reputational issues can each impact 20%-30% of EBITDA.

Meanwhile, netizens shared hilarious memes to depict the state of mind of Paytm shareholders. 

Jefferies cut its EBITDA estimates, excluding employee stock ownership plan, for Paytm by 46% in fiscal 2025 and 44% for fiscal 2026, seeing a 7%-10% fall in payments revenues, a 17%-24% drop in lending revenues, and compression in payments margins.

“Paytm’s business impact will largely come from reputational concerns arising from governance/compliance and hence, the path to resolution will be from stronger compliance with regulations and revoking of RBI measures,” Jefferies said.

The RBI will also terminate the nodal accounts of both Paytm and Paytm Payments Services no later than Feb. 29. Paytm Payments Services is a wholly-owned subsidiary of Paytm. Nodal accounts are used to facilitate transactions.

One 97 is one of India’s largest payment firms and counts SoftBank and Ant Financial among its early investors.

It holds 49% in Paytm Payments Bank, while CEO Vijay Shekhar Sharma holds the remaining 51%, according to the company’s annual report for 2022-23. The bank received its license in 2015.