Shares of One97 Communications, Paytm's parent will remain in focus today, April 27 after the Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Ltd. Despite the ban, brokerages have maintained bullish call on the stock.
The decision to cancel banking license, effective April 24, 2026, was rooted in years of regulatory friction. In March 2022, the RBI had directed the bank to stop onboarding new customers. In early 2024, further restrictions followed - ban on accepting fresh deposits, credits, or top-ups in customer accounts, wallets, and prepaid instruments.
Brokerages maintained a positive outlook, citing no or low impact of RBI action on Paytm Payments Bank. Jefferies' reiterated 'Buy' rating on the stock and raised its target price to Rs 1,350, marking a 17.6% upside from previous closing price of Rs 1,147.35. Meanwhile, Bernstein mainatined 'Outperform' rating on the stock at a target price of Rs 1,500. Taking an optimistic approach, the brokerage highlighted that the development may clear way for company to apply for NBFC or PPI license.
ALSO READ: Paytm Payments Bank License Revoked: What This Means For UPI Users?
Jefferies on Paytm
- Jefferies' maintained 'Buy' rating with a target price of Rs 1350.
- The cancellation of Paytm Payments Bank's License has low impact for Paytm
- All of Paytm's services continue to be operational
Bernstein on Paytm
- The brokerage maintained 'Outperform' coverage with target price of Rs 1500
- RBI cancelling Payments Bank license will not impact the current business/numbers
- Company had taken a write-off related to its investment - hence no one-offs expected either
- Paytm has no role in the current management/board.
- For the super optimistic investor, this development could be seen as clearing the way for the company to apply for a NBFC or PPI license. Additonally, this can pave way for certain payments products (e.g. wallet) and credit products to be offered by Paytm.
ALSO READ: Paytm Payments Bank Board Approves Resolutions For Winding Up After RBI Cancels Licence
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