One 97 Communications Limited has approved a Default Loss Guarantee of up to Rs 90 crore each to Muthoot Fincorp Limited and Kisetsu Saison Finance (India) Private Limited for loans disbursed through its platform. The guarantee, approved on June 4, 2026, will be provided in the form of fixed deposits or bank guarantees, net of invocations.
Paytm earns revenue through sourcing and collection fees under its loan distribution model. Financial guarantee expenses of up to Rs 90 crore per lending partner will be incurred over time, aligned with the loan distribution business.
In a separate development, Non-Executive Independent Director Ashit Ranjit Lilani withdrew his consent for reappointment for a second five-year term starting July 5, 2026. Lilani informed the board on June 3, 2026 that other professional commitments taken up after the board's May 6, 2026 approval prevented him from accepting the reappointment.
His current five-year term will conclude on July 4, 2026 at the close of business hours. Lilani will cease to be a director and will also step down as chairperson of the Nomination and Remuneration Committee and the Stakeholders' Relationship Committee, and as a member of the Audit Committee and Investment Committee. Lilani had originally given his consent for reappointment on April 9, 2026.
The board passed a resolution on June 4, 2026 noting the development and recorded its appreciation for Lilani's guidance during his tenure.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.