Paytm Dives as Plan to Reduce Smaller Loans Seen Hitting Profit

  • Stock plunges as much as 20%, the most since November 2021
  • Goldman Sachs, JPMorgan, Citigroup downgrade their ratings
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Paytm tumbled the most in two years after the fintech bellwether said it will reduce small-ticket size loans following the Indian central bank’s stricter rules to curb risky consumer lending.

Shares of the SoftBank Group Corp.-backed company, officially called One97 Communications Ltd., dropped 18.7% on Thursday. The slump, the steepest in more than two years, erased more than $1 billion in market value.