Aashish Pathak, the chief compliance officer (CCO) of Fino Payments Bank, has resigned, adding to the ongoing leadership challenges within the organization.
In a regulatory filing, the bank announced that Pathak submitted his resignation on March 13, citing personal reasons. His last working day was today.
Pathak was a key member of the senior management team, overseeing compliance and regulatory functions. He joined Fino in 2023 after nearly five years at ORIX Auto Infrastructure Services.
His departure occurs during a period of significant turmoil for the bank, which is currently facing increased regulatory scrutiny. Recently, the Hyderabad unit of the Directorate General of GST Intelligence (DGGI) arrested MD and CEO Rishi Gupta in connection with an alleged ₹840 crore GST evasion case involving online betting platforms.
The DGGI has accused Gupta of participating in a scheme that funneled funds through shell companies and program managers. However, Fino has asserted that this investigation is unrelated to its own GST compliance.
In a statement following Gupta's arrest, Fino emphasized its commitment to strong corporate governance and compliance, stating, "As a regulated entity, we are compliant with all the laws, including GST."
Following the arrest, Fino appointed CFO Ketan Merchant as interim CEO and formed a committee of senior executives and board members to manage daily operations.
Gupta has since been granted bail, but the board has postponed any decision regarding his reappointment as CEO until a reassessment of his suitability is conducted by the nomination and remuneration committee, pending the Reserve Bank of India's (RBI) input.
Notably, the RBI had approved Gupta's reappointment just a few months ago in January.
These developments come as Fino is undergoing a strategic transition, having received in-principle approval from the RBI to convert into a small finance bank (SFB) in December. Despite the ongoing disruptions, the bank remains focused on this transition.
On the market front, Fino Payments Bank's stock has faced significant pressure, recently emerging as the worst performer among new-age tech stocks, with shares dropping 15.81% last week to close at ₹127. Today, shares further declined by 7.13% to ₹117.95 on the BSE.
