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Shares of One97 Communications, Paytm’s brand owner, on Wednesday declined 4% after Paytm Payments Bank’s Managing Director and CEO Surinder Chawla resigned from the company.

The stock dipped 4% to Rs 388 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The company’s market valuation eroded Rs 463.84 crore during the morning trade.

Chawla’s resignation comes amidst Paytm Payments Bank Ltd (PPBL) facing prohibitory action from banking regulator Reserve Bank of India (RBI).

“Surinder Chawla, Managing Director and CEO of PPBL has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent,” One97 Communications said in a regulatory filing on Tuesday.

Chawla joined PPBL in January last year after the payments bank received approval from the RBI.

In a major action against PPBL, RBI, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29. Subsequently, the deadline was extended to March 15.

The direction follows persistent non-compliance and continued material supervisory concerns, the central bank had said in a statement.

One97 Communications holds a 49% stake in PPBL.