..... . VALI disclosures . .....: 13/08/25,BIZnews/Paytm

Wednesday, August 13, 2025

13/08/25,BIZnews/Paytm

Overview

Paytm share price rose 5.21% to Rs. 1,178.30 on August 13, touching a fresh 52-week high after RBI regulatory approval.
The RBI lifted its 2022 ban on Paytm Payments Services onboarding new merchants, conditional on a six-month audit.
- Analysts forecast potential upside to Rs. 1,400 amid strong trading volumes and removal of Chinese investor overhang.
Paytm share price as of 11:42 a.m. on August 13, 2025 (One97 Communications Ltd.) was trading at Rs. 1,178.30. It is up 5.21% from the previous close of Rs. 1,120. The rally pushed the shares to an intraday high of Rs. 1,187, matching its 52-week high. The stock opened at Rs. 1,150, and saw strong trading interest with 13.10 million shares changing hands, translating into a total traded value of Rs. 1,54,481 lakh. The volume-weighted average price (VWAP) stood at Rs. 1,170.49.
Surge Driven by RBI Approval
The gains came after the Reserve Bank of India granted Paytm Payments Services (PPSL). It is a wholly-owned subsidiary of One97 Communications, with in-principle authorisation to operate as an Online Payment Aggregator.
This approval also lifts the merchant onboarding restrictions placed on PPSL in November 2022. However, the RBI has required the company to complete a system audit, including cybersecurity checks, within six months. Failure to submit the audit report on time would lead to the lapse of the authorisation.
When the ban was first announced, Paytm's management had maintained that it would have no material business impact. They explained that it only restricted the onboarding of new online merchants.

Astral Shares Lose 7.28% in a Day, Hit Rs. 1,281 on Earnings Decline
Recent Developments Add to Positive Sentiment
Investor sentiment has also been boosted by the recent exit of Antfin, which sold its remaining stake in Paytm via block deals. Similar to Berkshire Hathaway's earlier move, Antfin exited at a loss, removing a long-standing 'Chinese overhang' from the stock.
Market Metrics and Valuation
Paytm shares' current market capitalisation stands at Rs. 75,263 crore. It has a P/E ratio of 760.52 and a P/B ratio of 5.88, both well above sector averages. The stock's beta of 1.36 indicates higher volatility compared to the market. The 20-day average trading volume is 7.78 million shares, with an average delivery of 32.46%.
Other key metrics include:
52-week low: Rs. 505.50
All-time high: Rs. 1,955
All-time low: Rs. 310
Book value per share: Rs. 200.72
TTM EPS: Rs. 1.55 (+105% YoY)
Paytm share price chart on TradingView shows gains of 4.71% as of 12.06 PM:
Analyst Ratings and Key Price Levels
Based on 17 analyst ratings on Moneycontrol, 41% recommend buying, 35% suggest holding, while 24% advise selling or underperforming. Several brokerages have revised their price targets upward following the RBI news, with some projecting levels as high as Rs. 1,400 in the near term. Technical resistance levels for the stock are seen at Rs. 1,181.33 and Rs. 1,158.67, with support around Rs. 1,097.33.
Market Outlook
Paytm stock appears well-positioned for further growth with regulatory hurdles easing and ownership concerns addressed. Analysts believe the RBI approval will enhance PPSL's merchant acquisition capabilities, potentially boosting revenue streams. However, completion of the mandated audit will be key for securing final authorisation.

If positive momentum continues, Paytm share price could challenge higher price targets in the coming weeks. In the meantime, investors should remain mindful of the stock's elevated valuation and volatility.
source: Analytics Insight

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Wednesday, August 13, 2025

13/08/25,BIZnews/Paytm

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14/08/25, The Reserve Bank of India (RBI) has rolled out a game-changing set of guidelines to help customers easily reactivate dormant bank accounts and claim long-forgotten deposits.

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