Shares of Fino Payments Bank plummeted 19.6% to touch a 52-week low of ₹136 apiece on the BSE during the intraday trading today, after a report said that the Directorate General of GST Intelligence (DGGI) may recommend an Enforcement Directorate (ED) probe into online gaming transactions connected with the bank.
The stock ended today’s trading session 17.3% lower at ₹139.85 apiece.
Earlier today, ET reported that the DGGI may recommend an ED probe into the company’s transactions after the former identified multiple suspected money laundering transactions.
However, Fino Payments Bank rejected the report. “This is non-factual and speculative. As consistently disclosed, the bank is currently not subject to any investigation by any authority other than the DGGI, Hyderabad, in connection with this matter,” it said.
Last month, Fino Payments Bank MD and CEO Rishi Gupta was arrested by the DGGI over alleged GST evasion. The DGGI has alleged that Gupta was one of the “masterminds” in an organised syndicate involved in routing funds linked to illegal online gaming platforms through shell entities and programme managers associated with Fino Payments Bank.
The payments bank has maintained that the GST case pertains to programme managers who have relationships with other banks, including Fino Payments Bank, and that it and Gupta have nothing to do with the actions of the programme managers.
Following Gupta’s arrest, the bank appointed CFO Ketan Merchant as the interim head to manage its day-to-day operations.
Gupta has moved the Telangana HC against his arrest. Last week, the court heard the matter and reserved the order till March 17.
Fino Payments Bank’s shares have crashed over 27% since Gupta’s arrest. His arrest came nearly a month after the RBI approved the reappointment of Gupta as Fino Payments Bank’s MD and CEO for a period of three years, with effect from May 2, 2026.
Fino Payments Bank made its public market debut in 2021 and received the central bank’s in-principle approval in December last year to convert into a small finance bank (SFB).
Earlier this month, the bank said it remains focused on its transition into a SFB, despite Gupta’s arrest.
On the financial front, Fino Payments Bank’s net profit declined 47% to ₹12.3 Cr in Q3 FY26 from ₹23.1 Cr in the year-ago period. Total income for the quarter declined 15% YoY to ₹394.4 Cr, due to a fall in its traditional transaction business.
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