Paytm gains on report of lending resumption with existing partners

Shares of One 97 Communications, the parent company of Paytm, rose nearly three percent in the afternoon session after Moneycontrol reported that the company has resumed its lending activities. At 2:34 pm, the stock was up 2.59 percent at Rs 416.55 on the NSE.

Paytm has resumed lending activities starting with merchant loans, with their existing partnership with SMFG India Credit (formerly Fullerton) and Shriram Finance, Moneycontrol reported. The company is also in talks to onboard Muthoot Finance as new lending partner for merchant and personal loans.

Paytm had temporarily stopped new loan disbursements after its partner banks and NBFCs waited for more clarity on RBI’s directive on Paytm Payments Bank.

Around 10-15 percent of Paytm merchants have autopay mandated through Paytm Payments Bank account. Paytm has been working to move their settlement accounts to other banks.

Paytm’s shares are still down 35 percent year-to-date after the stock was hammered after RBI imposed crippling restrictions on Paytm Payments Bank, effectively halting its business activities.