Fino Payments Bank shares plunge 16% to 1-year low; here's the likely trigger

Shares of Fino Payments Bank Ltd fell sharply in Monday's early trade, sliding 15.59 per cent to hit a 52-week low of Rs 142.70. At last check, the stock was trading 12.90 per cent lower at Rs 147.25. At this level, the stock has declined 31.50 per cent over the past one month.

The sharp fall came after a news report suggested that online gaming transactions involving Fino Payments may face a probe by the Enforcement Directorate (ED). Business Today, however, has not independently verified the report at the time of publishing this story.

Earlier, the senior management of Fino Payments, whose Managing Director and Chief Executive Officer Rishi Gupta was arrested on February 27 under provisions of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts, stated that the bank remains operationally stable and the issue pertains only to alleged GST evasion by certain programme managers associated with the bank.

The lender clarified that it has no involvement in the actions of the programme managers and that the issue is unlikely to impact its plans to convert into a small finance bank. Ketan Merchant, Chief Financial Officer, has been appointed as the interim head to oversee day-to-day operations in the absence of Gupta.

The bank had informed late on Friday that Gupta was arrested under Section 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017, on February 27 by the Directorate General of GST Intelligence in Hyderabad.

"The bank and Mr Gupta in his official capacity have no role in the business operations of the programme managers in question. Fino Payment Bank remains compliant with all GST regulations and other applicable laws and regulatory requirements," Merchant said.

Separately, Fino Payments recently informed bourses that its deposit balances have grown by nearly 9 per cent over the past two weeks, reaching an all-time high of around Rs 2,900 crore as of March 13, 2026.

The bank also reported strong traction in customer additions, opening around 1.5 lakh new banking accounts since February 27, 2026, translating to an average of nearly 10,000 new accounts per day during the period.

As of December 2025, promoters held a 75 per cent stake in the private lender.