Australian global financial services firm Macquarie has downgraded distressed fintech Paytm. The firm, in its latest move, marked the company as 'Underperform' and cut its target price to Rs 275 from Rs 650, citing the customer exodus which could affect the fintech's monetisation and business model.   

After the Reserve Bank of India order barring Paytm Payments Bank from offering banking services after February 31, the company's stocks have declined substantially from Rs 761.20 to around Rs 390 today. The stocks of the company were down around 7 percent in the early morning trade.   

Macquarie is not optimistic about the company's payment and distribution in the financial year 2025. It has slashed the revenue projection of Paytm to 60-65 percent over FY25. 

“Moving payment bank customers to other bank accounts or moving related merchant accounts to other bank accounts will require KYC (Know your customer) to be done again based on our channel checks with partners, indicating that migration within RBI's Feb 29th deadline will be an arduous task,” the brokerage firm said.

“Our channel checks with some lending partners reveal that they are re-looking at their relationship with Paytm which eventually could lead to a decline in lending business revenues in case partners scale down or terminate their relationship with Paytm,” the firm further said in its note.

Meanwhile, on Monday, while addressing reporters during his visit to Delhi for the 606th meeting of the Central Board of Directors of the RBI, which was also addressed by Finance Minister Nirmala Sitharaman, RBI Governor Shaktikanta Das said that there is hardly any room for reviewing the decision made on January 31 regarding Paytm Payments Bank.