Fino Payments Bank's shares experienced a significant decline, falling 18.6% to ₹113.6 during intraday trading today. This drop follows the Telangana High Court's dismissal of MD and CEO Rishi Gupta's writ petition for bail in an alleged tax evasion case.
The stock has been on a downward trajectory since Gupta's arrest in late February, reaching a new all-time low of ₹112.1 during trading. Year-to-date, the shares have plummeted nearly 56%, resulting in a market capitalization decrease from $240 million at the start of the year to $100 million (₹940.37 crore) currently.
Gupta was arrested by the Hyderabad unit of the Directorate General of GST Intelligence (DGGI) amid a GST investigation linked to over ₹840 crore in alleged tax evasion associated with online betting. Since his arrest on February 27, the company's shares have dropped approximately 41%.
Allegations against Gupta suggest involvement in a syndicate that funneled funds from illegal online gaming platforms through shell companies. Following his arrest, Gupta sought relief from the Telangana HC, claiming his arrest was arbitrary and unconstitutional. However, his request was denied yesterday.
Despite the turmoil, Fino Payments Bank stated that its operations and financial status remain unaffected. The bank reported stable customer balances and transaction volumes, continuing to add around 10,000 CASA accounts daily.
In light of the situation, Fino appointed CFO Ketan Merchant as the interim CEO. Previously, the Securities and Exchange Board of India (SEBI) had raised concerns about 15 complaints regarding fraudulent investment schemes involving bank employees. An investigation by KPMG revealed that 19 employees had engaged in unauthorized investment activities between December 2021 and April 2023.
Fino Payments Bank received in-principle approval from the Reserve Bank of India (RBI) in December 2025 to transition into a small finance bank (SFB). The company has reiterated its commitment to this transition despite recent challenges.
Financially, Fino reported a 47% decline in net profit for the December 2025 quarter (Q3 FY26), dropping to ₹12.3 crore from ₹23.1 crore in the same period last year. Sequentially, net profit also fell 20% from ₹15.4 crore in the previous quarter. Total income for the quarter decreased by 15% year-on-year and 2% quarter-on-quarter to ₹394.4 crore, primarily due to a downturn in its traditional transaction business.
