Fino Payments Bank tanks 19%, stock hits record low

In the past seven trading days, the market price of Fino Payments Bank was down 33 per cent despite the bank denied any involvement in betting or gaming activities.

Fino Payments Bank share price today

 

Fino Payments Bank stock hit an all-time low of ₹113.55, plunging 19 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes. 

 

At 12:19 PM; the stock quoted 18 per cent lower at ₹114.75. In comparison, the BSE Sensex was up 1.07 per cent. The average trading volumes at the counter more-than-doubled with a  combined 4.78 million equity shares changing hands on the NSE and BSE.

 

In the past two trading days, the stock price of the financial company tanked 25 per cent in two days. Further, in the past one month, it slipped 45 per cent, as against 10.6 per cent fall in the benchmark index.

 

 

Why is Fino Payments Bank share price under pressure?

 

In the past seven trading days, the market price of Fino Payments Bank has declined 33 per cent even as the bank denied any involvement in betting or gaming activities. Media reports suggested that the Directorate General of GST Intelligence (DGGI) may recommend a probe by the Enforcement Directorate (ED) into certain online gaming transactions linked to the bank over suspected instances of money laundering.

 

Regarding the alleged expansion of probe to Prevention of Money Laundering Act (PMLA)/ED, Fino Payments Bank clarified that this is non-factual and speculative. As consistently disclosed, the bank is currently not subject to any investigation by any authority other than the Directorate General of GST Intelligence (DGGI), Hyderabad, in connection with this matter, it added.

 

The bank further clarified that the ongoing investigation by the DGGI relates to certain programme managers and merchants associated with multiple banks, including Fino, and does not pertain to the lender’s own GST compliance. Fino also said media reports claiming that a court had rejected bail in the matter were “completely incorrect”.

 

The Bank reiterates that it does not directly or indirectly engage in or promote any gaming or betting activities through any platform, website or channel.

 

On February 27, Rishi Gupta, managing director and chief executive officer of the bank, was arrested under provisions of the Central Goods and Services Tax Act and the State Goods and Services Tax Act. The company had subsequently clarified that the investigation relates to a business partner and not to its own GST compliance.

 

Fino Payments Bank – ICRA view

 

Vide a stock exchange disclosure on February 27, 2026, Fino Payments Bank (FPBL) announced that its MD & CEO, Rishi Gupta, was arrested. In Gupta’s absence, the board of directors appointed Ketan Merchant, Chief Financial Officer, as the head of the organisation to carry and oversee the day-to-day operations of the bank.

 

Following the announcement, ICRA placed FPBL’s ratings on Watch with Developing Implications. While the management has emphasised that the bank has no role in the alleged GST evasion and has fully complied with tax laws, the matter remains under assessment by the authorities. 

 

ICRA notes that FPBL’s average deposits remained largely stable between February 23, 2026 and March 04, 2026. As per the Reserve Bank of India’s (RBI) regulations for payment banks, FPBL is required to maintain at least 75 per cent of its demand deposit balances (DDB) in Government securities (G-Secs) on T+3 days and a maximum of 25 per cent with other scheduled commercial banks (SCBs), which provides comfort from a liquidity perspective. 

 

Further, the management has clarified that the bank has been able to maintain its overall transaction/throughput volumes and daily average openings of current and savings accounts (CASA). ICRA said the rating agency shall continue to monitor developments, including FPBL’s deposits and transaction volumes, and take appropriate rating action as more clarity emerges on the investigation and its impact on the bank’s credit profile.  ==============================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.