Paytm, a fintech company that provides online payment services, yesterday announced stellar results for the September quarter. Since then, the company has received another piece of good news. In fact, the National Payments Corporation of India (NPCI) has approved Paytm to add new UPI users. The company is breathing a sigh of relief after experiencing a shock from the Reserve Bank of India (RBI) earlier this year.
Paytm breathes a sigh of relief
The National Payments Corporation of India (NPCI) confirmed Paytm’s approval to add new UPI users in a letter dated October 22, the last working day. According to fintech company Paytm, it received this approval after following all guidelines and circulars. Paytm has reportedly requested NPCI’s permission to add new UPI users in August. The plan was halted after the Reserve Bank of India took action against Paytm Payments Bank.
The company must accept these conditions
If we look at the NPCI’s approval letter, the regulator highlighted that Paytm will have to adhere to other necessary compliances including risk management, multi-bank guidelines and data security rules. Following this, Paytm said in a regulatory filing, “We are happy to inform that NPCI has allowed the addition of new users on our UPI platform in compliance with all relevant guidelines.
Paytm turns profitable for the first time
Earlier, online payment service company Paytm announced its second quarter results for the fiscal year 2024-25, with strong profits. The company achieved profitability for the first time after listing (Paytm Q2 Results). If we see, the company posted a strong profit of Rs 928.3 crore as against a record loss of Rs 838.9 crore in the previous quarter.
Paytm said in a stock exchange filing that in the September quarter it completed the sale of its entertainment ticketing business to online food delivery platform Zomato and earned an extraordinary profit of Rs 1,345.4 crore on the sale.
The impact of two pieces of good news on stock prices will be obvious
However, despite the stellar September quarter results, Paytm shares fell sharply on Tuesday, closing at Rs 684, down 5.78%. But the impact of these two pieces of good news combined can be seen on the company’s stock (Paytm Share) today. Let us tell you that Paytm has a market capitalization of Rs 43,770 crore.
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