Paytm Hits Lower Circuit For Second Consecutive Day As Payments Bank Deadline Nears

Shares of Paytm hit lower circuit for second consecutive day on Wednesday as the Reserve Bank of India's deadline for restrictions on Paytm Payments Bank draws near.

From March 15 services like deposit acceptance and credit transactions will be halted at Paytm. While the payments bank continues to seek alternative arrangements for its operations, official announcements are still awaited.

Once the deadline hits, customers will be able to use only certain services of Paytm Payments Bank like withdrawal of money, credit refund, payment of electricity bill, EMI for loan etc.

Shares of the company was locked in the 5% lower circuit of Rs 350.95 apiece. This compares to a 1.12% decline in the NSE Nifty50 Index as of 12:11 p.m. The shares hit the lower circuit for second consecutive day.

The stock has fallen 39.57% in the last 12 months. Total traded volume so far in the day stood at 0.3 times its 30-day average. The relative strength index was at 31.

Out of 14 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold,' and five suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 39.6%.