Paytm says reports that claimed some lenders invoked loan guarantees are "factually incorrect"
May 09, 2024
New Delhi [India], May 9 : Paytm on Thursday termed "factually incorrect" the media reports that said a few lenders may have invoked Paytm's loan guarantees.
"We respectfully request media outlets to refrain from inaccurate reporting and to make the necessary changes to their articles to reflect our clarifications and ensure factual integrity," One 97 Communications, which operates popular fintech company Paytm informed stock exchanges.
In the stock filing, Paytm asserted that it acts as a distributor of loans, and does not provide a First Loss Default Guarantee (FLDG) or other loan guarantees to lending partners.
It again reiterated that the article's claims about invoking loan guarantees due to repayment defaults by the partnered lenders are "inaccurate".
"We continue to collaborate with multiple banks and NBFCs, ensuring a diversified lending partnership network while strictly adhering to risk and compliance. Our Personal Loans distribution business was not disrupted and continued to scale effectively," Paytm's stock filing read.
On Wednesday, May 8, a news article, citing sources, claimed that Aditya Birla Finance, one of the key lending partners for One97 Communications-owned Paytm, may have invoked loan guarantees.
With regards to media articles on recent employee exits, Paytm, without getting into specifics, emphasises that the company has a robust senior leadership structure with over 50 Senior Vice Presidents, supported by a strong management and governance framework.
"Leaders within this structure oversee operations and reviews across business, product, and technology. All recent changes at Paytm have been aligned with pre-approved succession plans discussed with the Board in previous financial years," Paytm said.
"As part of our annual performance assessment, we will continue to evaluate our talent bench periodically within the context of our future plans, which will result in transition of some roles and employees," it added.
