Paytm share price: Macquarie shares view on Vijay Shekhar Sharma's resignation from payments bank board

The foreign brokerage said the regulator would have to provide some relaxation to PPBL in order to ensure survival but the broking firm does not expect the RBI to authorise any related party transactions between Paytm and PBBL in the future.

Macquarie also said that some lending partners are looking again at their relationship with Paytm and that its lending business may take a hit if partners scale down or terminate their relationship with the fintech giant.

"If Paytm Payments Bank is allowed to carry out operations, will provide addition to profitability for Paytm," Macquarie noted in its latest research note to clients.

Macquarie had earlier its target cut on the Paytm stock that was driven by a sharp reduction in revenues across various segments. Post the recent regulatory changes and diktats, Paytm faced a serious risk of exodus of customers, which significantly jeopardised its monetisation as well as its business model.

To recall, Macquarie was the same broking firm, which initiated coverage on the Paytm stock at ₹1,200, on the day of its listing back in November 2021, over its issue price of ₹2,150 apiece. Last year, Macquarie double upgraded stock, upping its target price from a low target of ₹450 that it suggested on the counter. This target price is the lowest by the brokerage on the Paytm stock.

Macquarie's earlier note came a day after the RBI governor Shaktikanta Das suggested that there was no room for the central bank to review the regulatory action on Paytm Payments bank.