Fino Payments Bank shares down 40% in a month; stock in focus again - Here is why

Fino Payments Bank Ltd shares are set to react on Friday after managing director (MD) and CEO Rishi Gupta was granted bail by a special court. On Thursday, March 26, 2026, the judge for economic offences in Nampally, Hyderabad, granted bail. 

Meanwhile, in the last session on Wednesday, Fino Payments Bank shares jumped 9.99% to settle at Rs 122.75 apiece on the BSE. Even with this, the stock is still down nearly 40% in a month. The counter has been under severe selling pressure ever since Gupta's arrest.

In a stock exchange filing on Thursday, the bank welcomed the order and clarified the nature of the probe. "As previously stated, the ongoing investigation relates to certain programme managers associated with multiple banks, including the Bank, and does not relate to the Bank's GST compliance," the lender said.

The bank's board also decided to withdraw an ongoing postal ballot resolution that sought to re-appoint Gupta as MD & CEO for a consecutive three-year term starting May 2, 2026.

The bank noted this withdrawal was executed in the interest of due process and sound corporate governance practices. The exchange filing said that Gupta's candidature is in no manner withdrawn, abandoned or prejudiced by this action. 

The company said “guidelines issued in this regard and a reassessment of the fit and proper status of Rishi Gupta by the NRC and Board, and after a view is taken by the RBI in this regard.”

This began early on February 27, when the bank disclosed that Gupta had been arrested under the provisions of the CGST and SGST Act, 2017. Following the leadership vacuum, the RBI approved the appointment of the bank's chief financial officer, Ketan Merchant, as the interim CEO for three months.

Also, on March 24, the Telangana High Court dismissed a writ petition filed by the CEO challenging his arrest.