Fino Payments Bank shares recover from 52-week low

File picture of Rishi Gupta, MD & CEO of Fino Payments Bank, who has been arrested

Shares of Fino Payments Bank traded flat on the NSE at ₹190.28 at 12.27 pm, after sinking 14 per cent in early trade to a 52-week low of ₹165.01 from the previous close of ₹192.19. During the session, the stock moderated from ₹165.01 to ₹198.90 after opening at ₹175, indicating a sharp intraday recovery amid heightened volatility.

The scrip’s movement followed the arrest of the bank’s Managing Director and Chief Executive Officer Rishi Gupta on Friday in connection with alleged GST violations. The development came barely a month after the RBI approved Gupta’s reappointment as MD and CEO.

In a stock exchange filing on Monday, the company said the alleged GST violations pertain to an investigation involving certain programme managers who maintain relationships with multiple banks, including Fino Payments Bank. It clarified that the investigation by the Director-General of GST Intelligence relates to these managers and not to the bank’s own GST compliance.

The bank said it is cooperating with the authorities and providing relevant information to support the investigation. It added that neither Gupta nor the bank has any involvement in the business actions of the programme managers in question. The lender further said it does not directly or indirectly engage in or promote any betting activity through any forum, website or platform.

According to the disclosure, Fino Payments Bank has not evaded any GST dues and remains compliant with all regulations relating to GST payments. It said no fake invoices have been issued and that all invoices are based on services utilised by programme managers or merchants. The bank also emphasised that its merchant onboarding process is aligned with regulatory requirements and handled by concerned business teams, not by the MD and CEO.

The filing noted that the bank maintains a robust risk management framework for transaction monitoring of merchants using the Virtual Payments Address provided by it. It also clarified that it does not maintain current accounts of programme managers or merchants, and that funds received through the VPA handle are settled to the designated accounts of programme managers or merchants with the respective public or private sector banks.

The company said its operations and business continue as usual and that it does not foresee any financial liability at this stage in relation to the matter. It added that it has been engaging proactively with stakeholders, including regulators, to ensure transparency and compliance.

The lender also noted that the RBI has given it a timeline of 18 months to complete its transition into a small finance bank and expressed confidence of completing the process within the stipulated period.

Published on March 2, 2026