What is “Paytm Karo” brigade
The “PAYTM Karo” brigade, a movement spearheaded by Paytm to encourage digital transactions across India, has seen significant growth, driving the digital payment giant to new heights. This initiative, which translates to “Do it with Paytm,” aims to deepen the penetration of digital payments in the country by making Paytm’s platform the go-to choice for a wide range of financial transactions.
Four-Day Stock Rally
Paytm’s stock has soared by an impressive 21% in just four days, a testament to the company’s recovering market sentiment and strategic maneuvers. This surge is a significant turnaround, considering the skepticism Paytm faced regarding its profitability and growth potential.
Strategic Decisions Fuelling Recovery
RBI’s Deadline Extension
A pivotal moment for Paytm came with the Reserve Bank of India (RBI) extending the deadline for compliance with new digital payment norms by an additional 15 days, until March 15. This extension for Paytm Payments Bank (PPBL) to complete deposits, credit transactions, or top-ups has eased operational pressures, contributing to the positive market response.
Paytm’s Axis Bank Pivot
In a strategic move, Paytm announced the transfer of its nodal account to Axis Bank. This decision ensures that merchant payments remain undisrupted, allowing for continuous acceptance of digital payments through Paytm’s QR code or card machines. While Paytm Payments Bank account deposits will cease post-March 15, the company has assured that transactions, withdrawals, and transfers will continue unaffected.
Leadership’s Reassurance
Vijay Shekhar Sharma, Paytm’s founder and CEO, has been at the forefront, reassuring stakeholders that critical services like Paytm QR, Soundbox, and card systems will remain operational beyond the March 15 deadline. His message of continuity and resilience has played a crucial role in restoring faith among users and investors alike.
Bernstein’s Optimistic Outlook
Bolstering Paytm’s stock rally, Bernstein issued an ‘outperform’ rating with a target price of ₹600 per share. Bernstein’s analysis suggests that the RBI’s regulatory actions, targeted at PPBL, will not hinder Paytm’s broader operations. Meanwhile, global brokerage firm Jefferies has paused its coverage on Paytm, citing a preference for stability before further analysis.
