“One 97 Communications Ltd (Paytm) would like to inform that the Company and its associate entity, Paytm Payments Bank Limited (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL,” Paytm said in a statement.
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Further, PPBL shareholders have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders.
Paytm had announced earlier that it would sign up new partnerships with other banks and take measures to provide seamless services for its customers and merchants. In its intimation to stock exchanges on Feb 1, 2024, the company had indicated the possible financial impact.
Earlier this week, on Monday, Vijay Shekhar Sharma – the founder of Paytm – announced his resignation from the board of Payments Bank, which replaced its directors with new inductees, mostly from the banking and bureaucratic fraternity. The reconstituted board now includes former Central Bank of India chairman Srinivasan Sridhar, retired IAS officers Debendranath Sarangi and Rajni Sekhri Sibal, as well as former executive director of Bank of Baroda Ashok Kumar Garg.
Also read | Paytm Payments Bank and Paytm to discontinue inter company agreements amid regulatory scrutiny
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In the meantime, SoftBank Group has offloaded a 2.2% stake in Paytm between January 23 to February 26 through the open market route. Following the sale, SoftBank, through its affiliate SVF India Holdings (Cayman), holds a 2.83% stake in the company. Read hereThe global investment firm saw uncertainty growing in India’s regulatory environment, as well as over Paytm Payments Bank’s license, Navneet Govil had told Bloomberg News earlier this month.
“We felt it was prudent to start monetizing,” Govil said, adding “We’re glad we did a good portion of Paytm before the recent stock correction.”
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