Paytm rallies 4% on board nod to snap inter-company pacts with Payments Bank

Shares of Paytm gained over 4 percent on March 1 after the fintech's board gave its approval for the discontinuation of several inter-company agreements with its associate entity, Paytm Payments Bank Limited (PPBL).

At 9:21am, Paytm shares were trading nearly 4 percent higher at Rs 418.50 on the National Stock Exchange (NSE). So far this year, the stock has tanked around 35 percent. In comparison, Nifty has risen nearly 2 percent during this period.

In a regulatory filing, Paytm informed that the company and its associate PPBL have introduced 'additional measures to strengthen their approach towards independent operations of PPBL.'

"As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities. Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders," Paytm said.