By P.R. Venkat


The owner of Paytm, India's largest mobile-payment company, and its affiliate bank have agreed to terminate various agreements to pursue their own business goals.

One97 Communications said Friday that the move would reduce dependencies and allow Paytm Payments Bank's governance to be independent of its shareholders.

Shares of the Paytm owner rose and were recently 4.0% higher at 421.50 rupees ($5.08).

The decision came after India's central bank in January directed Paytm Payments Bank to halt new customer sign-ups and deposits, citing noncompliance with financial regulations and material supervisory concerns. As a result, the lender was no longer permitted to accept further deposits or process credit transactions, though customers could still withdraw funds.

One97 Communications shares were hit hard by the regulatory action, falling more than 45% in February.

Earlier this week, Paytm's founder and chief executive, Vijay Shekhar Sharma, stepped down from the board of its affiliate bank in an overhaul.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

03-01-24 0142ET