One 97 Communications Ltd (Paytm) shares are under scrutiny on Friday morning after the Vijay Shekhar Sharma-led company rejected rumors that a key financing partner, Aditya Birla Finance, has invoked loan guarantees. The ET was the first to disclose it, and several other newspapers, including Moneycontrol, followed up with articles that Paytm claimed were factually false.
"We respectfully request media outlets to refrain from inaccurate reporting and to make the necessary changes to their articles to reflect our clarifications and ensure factual integrity," it continued.
Paytm, whose shares have fallen 63% in the last six months, stated that it works as a loan distributor and does not provide lending partners with First Loss Default Guarantees (FLDGs) or other loan guarantees.
"Therefore, the article's assertions concerning invoking loan guarantees owing to repayment defaults by our linked lenders are incorrect. We continue to cooperate with numerous banks and NBFCs to provide a diverse lending partnership network while adhering to tight risk and compliance guidelines. "Our Personal Loans distribution business was not disrupted and continues to scale effectively," Paytm stated.
Earlier this year, the RBI prohibited a Paytm subsidiary from receiving additional deposits, top-ups, or credit transactions into its controlled wallets or accounts. Paytm later gained approval from the NPCI to become a third-party app provider for UPI. Axis Bank, HDFC Bank, State Bank of India, and YES Bank are Paytm's PSPs (Payment System Providers).
Paytm says its Merchant Loan operations would resume by the end of March 2024, following the conclusion of the "@paytm" handle transfer.
"In response to recent media coverage of employee departures, we would like to highlight the company's strong senior leadership structure, which includes over 50 Senior Vice Presidents and is supported by a solid management and governance framework. "Leaders in this structure oversee operations and reviews across business, product, and technology," Paytm stated.
The online payments company stated that all recent changes at Paytm have been in line with pre-approved succession plans discussed with the Board in past fiscal years. Paytm stated that as part of its yearly performance evaluation, it will continue to evaluate its talent bench on a regular basis in light of future objectives, resulting in the movement of some roles and workers.
"However, it also gives an exciting chance to reward our top performers for taking on leadership roles and to welcome new executives who will help drive the next wave of growth. We will continue to cultivate a dynamic atmosphere that welcomes change and encourages everyone to contribute to our continued success," the statement read.
