Paytm has been approved by NPCI to add new UPI users. Paytm's parent company One 97 Communications Limited gave this information on October 22.
After the approval to add UPI users, Paytm's shares are up by about 6% today. It is trading above Rs 730. Yesterday it closed down by 5%.
RBI had banned for not following the rules
Earlier this year, RBI had barred Paytm Payments Bank from adding new UPI users on the Paytm app. This ban was imposed for not following the rules.
Paytm's UPI service was powered by Paytm Payments Bank and after the RBI action, the company had to partner with other banks to continue the UPI service.
- The parent company of Paytm brand is One97 Communications Limited.
- It also has an associate bank, Paytm Payment Bank Limited.
- Services are available on Paytm app through Paytm Payment Bank.
- One97 Communications holds 49% stake in Paytm Payment Bank.
Vijay Shekhar Sharma had demanded lifting of the ban
Paytm founder Vijay Shekhar Sharma had demanded NPCI to remove these restrictions on August 1. NPCI's approval will help Paytm to increase its user base.
Paytm makes net profit of ₹930 crore in the second quarter
Paytm's parent company One 97 Communications has made a net profit of ₹ 930 crore in the second quarter of FY 2024-25, compared to a loss of ₹ 290.5 crore in the same period last year. There was a one-time contribution of ₹1,345 crore to the company's net profit.
Excluding the amount from the sale of movie ticketing business, Paytm has suffered a loss of ₹415 crore in this quarter, which is more than the loss recorded in the same quarter last year. The company had released the results of Q2FY25 i.e. July-September on October 22.
Operational revenue decreased by 34% on annual basis
The company's operational revenue declined 34% to ₹1,660 crore from ₹2,519 crore in Q2FY25 compared to the previous year.
Rs 1,345 crore earned from selling movie ticketing business
Paytm had recently sold its movie ticketing business to Zomato. Due to Rs 1,345 crore received from this, Paytm has made a net profit of Rs 930 crore.
The cash transaction was approved by the boards of Zomato and Paytm on August 21 (Wednesday). By selling it, Paytm wants to focus on its core financial services.
Paytm shares fell by 5.78%
Paytm shares fell 5.78% after the results were announced. It closed at the level of Rs 684. This stock has given a return of 4.98% in the last one month and 81.10% in the last 6 months. However, Paytm shares have given negative returns of 25.95% in the last 1 year.
Paytm was started in 2009
Paytm's parent company One97 Communications launched the Paytm payment app in August 2009. Its founder is Vijay Shekhar Sharma. Currently, Paytm has more than 30 crore users in the country. The market cap of Paytm is around Rs 28 thousand crores.
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