Fino PB withdraws resolution seeking shareholders' nod to reappoint CEO

Bank says Rishi Gupta's candidature 'remains unaffected', proposal will be reconsidered after regulatory review

Fino Payments Bank has withdrawn a proposal seeking shareholders’ approval to reappoint Rishi Gupta, its managing director (MD) and chief executive officer (CEO), citing the need for due process and corporate governance practices.

 

Gupta was granted bail on Thursday, nearly a month after his arrest in connection with alleged goods and services tax (GST) evasion.

 

“The candidature of Mr Rishi Gupta for his reappointment as MD & CEO of the bank remains unaffected and is in no manner withdrawn, abandoned or prejudiced by this action,” the bank said in an exchange filing.

 

The proposal will be reconsidered “at an appropriate time”, subject to regulatory requirements, including a reassessment of Gupta’s “fit and proper” status by the bank’s nomination and remuneration committee and board, as well as a final view by the Reserve Bank of India (RBI).

 

 

The proposal, part of an ongoing postal ballot issued on February 26, had sought shareholder approval for Gupta’s reappointment for a three-year term from May 2, 2026, to May 1, 2029.

 

The ballot included two resolutions: Payment of remuneration to Gupta for FY25 and his reappointment as MD & CEO. Following the withdrawal of the second resolution, only the remuneration proposal will now be put to the vote.

 

The bank said votes already cast on the reappointment resolution would be treated as null and void.

 

Gupta was arrested in connection with alleged GST evasion linked to programme managers in the real money gaming ecosystem, the dismissal of his writ petition by the Telangana High Court, and his subsequent bail by a special court in Hyderabad.

 

According to the special court’s bail order, Gupta must furnish a personal bond of Rs 10 lakh along with two sureties of the same amount. The court also directed him to deposit his passport, seek prior permission before travelling abroad, and appear before authorities on the first and third Monday of every month until further orders.

 

Fino Payments Bank clarified that the investigation pertains to certain programme managers associated with multiple banks and does not relate to its own GST compliance. It added that it would continue to cooperate fully with the authorities.

 

“The Bank reiterates its commitment to strong governance practices, regulatory adherence, and transparency. The Bank’s operations remain stable and uninterrupted, and it shall continue to serve its customers and stakeholders in the normal course of business,” it said, adding that it will continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements.