Shares of One97 Communications, the owner of Paytm, climbed on Friday morning after the company refuted recent media claims of problems with its lending business as “factually incorrect” on Thursday.

What Happened: Paytm clarified that it only acts as a distributor of loans and does not provide a First Loss Default Guarantee (FLDG) or any other loan guarantees to its lending partners.

The company emphasized that “the claims about invoking loan guarantees due to repayment defaults by our 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.”

The company also reported that its Personal Loans distribution business continued to scale effectively without disruption. The Merchant Loan business resumed for the fintech player at the end of March 2024 following the completion of the "@paytm" handle transition.

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In response to recent employee exits, Paytm highlighted its strong leadership structure, which includes over 50 Senior Vice Presidents and 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,” the company stated.

Paytm also mentioned its commitment to continuous talent evaluation as part of its annual performance assessment. “This will involve transitioning some roles and employees in line with our future plans,” the company added.

Price Action: One 97 Communications Ltd. shares were trading 4.74% higher at ₹348.80 on Friday morning, shortly after markets opened for trading.

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