Paytm stock rises 5% after Axis Bank deal, extended deadline
Paytm stock surged 5% today, reaching the upper circuit for the second day in a row after the company revealed a partnership with Axis Bank to handle merchant payments. The shares were trading at Rs. 358.35 on the NSE. The stock is also seeing upward movement because the Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank account holders to transfer their assets and find alternative banks from February 29 to March 15.
One97 Communications shifts nodal account to Axis Bank
Paytm's parent company, One97 Communications, has moved its nodal account to Axis Bank via an escrow account. An escrow account is a third party account that holds money when the transaction between two parties is underway. Paytm, Paytm QR, Soundbox, and card machines will still function for all merchant partners, as stated by the fintech company.
Citi maintains a 'sell' call on Paytm stocks
Citi maintains a "sell" call on Paytm stocks with a target price of Rs. 500 per share, arguing that RBI's FAQs do not directly address bank partnerships with Paytm. Despite Paytm's nodal account shift to Axis Bank and the deadline extension, Citi points out that business operations for quarters or devices connected to non-Paytm Payment Bank accounts remain unaffected. Meanwhile, Jefferies India has suspended its rating until the "news flow settles down."
