It has been two weeks since the Reserve Bank of India imposed restrictions on Paytm Payments Bank (PPB). Following the diktat, foreign brokerages like CLSA, Morgan Stanley, Jefferies, Bernstein have cut their target prices for One 97 Communications (Paytm) by 20-60 percent, with Macquarie the biggest bear on the Street.

While restrictions on PPB do not directly impact the lending business, brokerages seem to be divided on the matter. Some brokerages see a huge customer exodus impacting loan distribution, while some say the impact will only be on the wallets business. PPB houses all of Paytm's 33 crore wallets.

Also Read: MC Explains: Can Paytm sustain its business model? A deep dive into how it operates and what-if scenarios

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