Fino Payments Bank share price plunges 20% in two sessions; here's why

In Monday's session, Fino Payments Bank share price declined 14.14 per cent to a 52-week low of ₹165.01 per share on the National Stock Exchange (NSE)

Fino Payments Bank share price today

Fino Payments Bank share price declined over 14 per cent on Monday, extending its losses into a second straight session, after the arrest of the bank's Managing Director and Chief Executive Officer (CEO), Rishi Gupta.  

Fino Payments Bank share price declined 14.14 per cent today to an intrday low of ₹165.01 per share, also its 52-week low, on the National Stock Exchange (NSE). In two days, the stock has slipped 20 per cent.  

As of 11:44 AM, the scrip pared losses to trade 0.78 per cent down at ₹190.70, as compared to a 1.4 per cent decline in the Nifty 50 index. Around 2.6 million shares of the company have changed hands on NSE so far.   CATCH STOCK MARKET UPDATES TODAY LIVE

Why did Fino Payments Bank share price fall today?

 

Fino Payments Bank share price fell significantly in Monday's session as the lender reported that its Managing Director and Chief Executive Officer (CEO), Rishi Gupta, was arrested under the Central Goods and Service Tax (CGST) and the state GST Act, 2017, on Friday.  

The lender clarified that the investigation by the Director General of GST Intelligence was related to the programme manager(s) associated with multiple banks, including Fino Payments Bank and not related to GST compliance of the Bank itself.  Programme managers, it said, were the entities who source merchants for the Bank for UPI transactions. The lender is compliant with all regulations relating to the payment of GST. 

The lender also clarified that its programme manager and merchant onboarding processes were in line with the regulatory requirements. Further, the onboarding was being done by the concerned business and relevant teams instead of the managing director or CEO. As part of the onboarding checks, one of the preconditions is that merchants, who are referred by programme managers, need to have an existing banking relationship with other banks to facilitate the UPI transactions.  The lender is cooperating fully with the authorities and providing all requested information, according to the exchange filing. 

Fino Payments Bank said that there is no material impact on the bank's operations. In case of an impact, the bank will disclose it to the  stock exchanges. 

CFO takes over

To take care of the day-to-day operations of the lender, the board of directors has appointed Ketan Merchant, chief financial officer (CFO), as the head of the organisation in the absence of Gupta. He will head the organisation until resolved otherwise by the board, or Gupta resumes office, whichever is earlier, Fino Payments Bank said in an exchange filing.   READ | Titan, Kalyan: Jewellery stocks tumble up to 16% amid West Asia jitters 

Technical view

Currently, the chart structure of Fino Payments Bank appears weak, reflecting sustained selling pressure over recent sessions. Although the stock has taken temporary support near a falling trendline, this support is not yet backed by strong bullish confirmation. The overall price action continues to indicate lower highs and lower lows, which keeps the broader trend negative, said Jigar S. Patel, senior manager, equity technical research at Anand Rathi Share and Stock Brokers. 

Traders should adopt a wait-and-watch approach at current levels. A decisive daily close above ₹208 is required to signal strength and improve short-term momentum. Until such a breakout occurs, upside attempts may face resistance near ₹208. On the downside, immediate support is placed around ₹165, and a breakdown below this level could trigger further weakness. Hence, cautious trading is advised within the ₹165–₹208 range. 

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