Paytm payment bank, the subsidiary of Paytm is basically asked to shut shop by RBI citing persistent non compliance and continued material supervisory concerns
These are some serious words used by the RBI
There’s no doubt about what will happen to stock now but let’s see the impact on the overall business and sentimental impact on the Fintech ecosystem
As per initial assessment shared by Jefferies, , Lending business which is 20% of the revenues should be affected and Fastag gross merchandise value (GMV) where Paytm is the third largest player with 17% market share with nearly 6 crore users will be affected massively and Wallet GMV will be gone completely. The overall revenue impact should again be 5% atleast here
With a blow of nearly 25% atleast to the revenues at present and more importantly, loss of trust and reputation, things are looking nasty for the company.
Even promoter entity which recently bought 10% stake from Alibaba at 795 per share worth 5000 crores will most likely endure tough times and if this is a leveraged buy, it will be super nasty
Let’s await for further details from company and even RBI
all lending business will be on trouble in future - be carefull about investment in lending business
the rates for personla loan in NBFC is unimaginable
Bajaj finance collectiong 28% intrest rate
credit access 32%
all app collecting 22% to 37%
even indian government cannot borrow money for this much intrest rate - but indian govt is allowing to lend own people for any intrest rate
what RBI is doing
None of this makes sense. Indian govt have excellent credit rating, why should they borrow at 20-30%?
If your credit rating is bad you will have to pay exorbitant interest rate. This is how lending work.
These are again blanket statement without any context. I have excellent credit score and if I go to bajaj finance, I will easily get a personal loan at 10-12%. If somebody is asked to pay up 28% its mainly because they have very poor credit score or past defaults or no income sources.
If you are a high risk customer, you end up paying risk premium.
If RBI stops this, those people will not have any ways to borrow and will end up going to loan sharks who will not only charge higher interest but will also exploit the people. (which is any ways happening now with vast majority of uneducated / unbanked people)
@Akash_Shah Then why RBI is worring lending high intrest rate to the people - lets go back what happended in 2008 financial crisis -
UAE Prime minister comment on his national day - without individual family economy is not grown - there is no growth in the country -
Then how nirav mody , vijay mallaya these govt give loan in a large chunk - even no colleteial and then they are happy to write off
This is RBI duty to lend at maximum cap intrest rate like 15% only in country currently not more then that for any kind of loan
RBI is failed to regulate the lending rate in NBFC space - people are suffering
i will never borrow money for intrest - for those who need RBI step in and lend at acceptable intrest rate by the poeple
Now RBI is wake up in Paytm and bajaj finance and closely watching NBFC space
GOVT always look poor people and their financial needs not only look ambani or adani or nirav modi or mallaya
I think you have some great idea, why don’t you apply to be RBI governor
Anyways, none of this is relevant to the thread being discussed, so will refrain from replying to such rants. Thanks.
I use Paytm Money too
Currently there is no impact.
Besides all your investment are directly with MF (and not paytm Money) so as such investment are not impacted.
yeah, looking at huge amount of sell qty even at lower circuit price for last two days, seems like it was a leveraged buy and lenders are dumping the stock.
Interesting. I am not sure how VSS would have funded that transaction otherwise.
But anyways it was a sham transaction. I remember press release then said that VSS entity has bought the stake but somehow Ant finance will continue to holds economic rights of those shares.
Only other explanation I can think of is shady transaction to show that Ant financial don’t hold big stake, but somehow continue to hold it through back door with VSS as front.
paytm is a loss makiing company any way there is big drama backside is there if you believe are not is upto you
here in UPI paytm ic contributing big play
consumer finance bajaj finance is contributing big
now JIO financial is there , if ambani want to catch business these company want to be in truoble and spread bad name to consumer - these all Ambani move i think - because govt people is also support ambani
jio finance want to catch those business - the drama is like that
paytm there is no value -
contra is only in bluchip - not in redchip
paytm will never make money - there is lot of competion in international level , and they forced not to follow RBI guidlenses - RBI is closely watching company
stay away - then sorry
Seriously interested to know what parameter you are using to calculate valuation? do share.
Or you are simply saying that price has fallen so it is attractive now?
