Paytm slumps 20% on likely earnings impact from scaling down postpaid loans

Shares of One 97 Communications (Paytm) tumbled 20 per cent on Thursday in what was its worst single-day fall since listing. The stock hit the lower circuit price of Rs 650.65 on BSE in early trades after the company announced it will scale down small-ticket size loans, especially, those below Rs 50,000.

At 10:40 am, the stock was slighlty off lows and was trading 17 per cent lower. The development, Paytm said, comes on the back of RBI’s regulatory action of tightening unsecured consumer credit norms last month.