Fino Payments Bank (FINOPB) plunged as much as 14.1% in early trade, hitting an intraday low of ₹182.50.
The sharp sell-off followed the arrest of the bank’s MD and CEO, Rishi Gupta, by the Directorate General of GST Intelligence (DGGI) on Friday. While the stock pared some losses later in the morning, it remained one of the top losers on the exchange, reflecting deep investor concern over the leadership vacuum and regulatory scrutiny.
Market Reaction & Performance
The stock opened with a significant gap down as investors reacted to the first full trading session since the news broke over the weekend.
| Metric | Details (as of March 2, 2026) |
| Intraday Low | ₹182.50 (-14.1% from previous close) |
| Previous Close | ₹208.29 (before the Friday evening disclosure) |
| 52-Week Low | ₹180.50 (tested during early volatility) |
| Market Cap Impact | Erased over ₹250 crore in investor wealth in a single session. |
Why Investors are Spooked
The arrest is particularly damaging due to its timing and the gravity of the allegations:
- The “SFB” Transition Risk: The bank recently received in-principle approval from the RBI to convert into a Small Finance Bank. Investors fear this legal complication could derail or significantly delay the final license.
- CEO Re-appointment: The RBI had just approved Rishi Gupta’s re-appointment for a new three-year term starting in May 2026. His legal status now puts the bank’s long-term leadership into question.
- The “Online Gaming” Link: Reports linking the case to a ₹13,000 crore illegal online betting network—allegedly using the bank’s API “pipes” to funnel money—have raised serious questions about the bank’s oversight of its technology partners.
Bank’s “Damage Control” Efforts
Fino Payments Bank issued a fresh clarification to the exchanges this morning to stem the bleeding:
- “Not a Compliance Issue”: The bank reiterated that the investigation is focused on third-party program managers (who source merchants) and not on the bank’s own internal GST compliance.
- No Financial Liability: The bank stated it sees no direct financial liability arising from the probe at this stage.
- Leadership Stability: CFO Ketan Merchant has taken over as the “Head of Organisation” and assured stakeholders that all services remain fully operational and uninterrupted.
“The bank and its MD & CEO Rishi Gupta have nothing to do with the actions of the program managers… we have a robust compliance framework in place.” — Ketan Merchant, Interim Head
Industry Sentiment
The Payments Council of India and several fintech leaders have reportedly written to the Finance Ministry, expressing shock at the “immediate arrest” of a regulated bank’s CEO over an issue involving external business partners. They have labeled the move as potential regulatory overreach, which may provide some psychological support to the stock if the government intervenes or provides clarity.
