910
6 hours ago
Fino Payments Bank Shares Slump Over 17% On Report Of Potential ED Probe
Summary
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
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
The DGGI may recommend an ED probe into the company’s transactions after the former identified multiple suspected money laundering transactions, as per reports
Last month, Fino Payments Bank MD and CEO Rishi Gupta was arrested by the DGGI over alleged GST evasion
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.
Unlock special offers and join 10,000+ founders, investors & operators staying ahead in India’s startup economy.
Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the
hottest startup deals, supercharge your innovation projects, and stay updated with expert
curation.
Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn
to validate ideas, acquire customers, secure funding, and navigate the journey to startup
success.
Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence,
understand market landscapes, and decode emerging trends to make informed decisions.
Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful
investors, and keep track of upcoming funds, accelerators, and more.
Join a community of 10,000+ leaders & operators – unlock unlimited access to Inc42 stories,
videos, deals, member-only perks, and more.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Over $250,000 worth deals on software & tools to help your business scale up.
Network with industry leaders & operators with exclusive invites to Inc42’s
member-only virtual events
Enjoy an ad-free and clutter-free
experience as a member, focus on
what really matters to you
Your contribution will go on to
support and empower our unbiased
& data-driven journalism
Join 1000's of entrepreneurs, business leaders & makers and stay ahead with our sharp,
incisive & data-driven analysis on India’s tech and startup economy!
Unlock personalised stories, ad-lite reading, and exclusive newsletters on Inc42.
Tired Of Playing Catchup On Indian Tech?
Stay Ahead. Every Morning at 8
Get The Week’s Most Consequential Developments.
Inc42 In-Depth is your daily 9 PM newsletter with sharp insights from India’s startup economy.
Inc42 Moneyball is your Thursday newsletter on India’s venture capital trends. 4 PM sharp.
Inc42 Markets is your weekly newsletter on tech IPOs & startup stocks. Every Sunday
get access to a list of 200+ family offices betting big on startups
Get access to a list of Alma Mater Of India's Unicorn & Soonicorn Founders
Explore 75,000+ startups, 3,500+ investors, 25,000+ funding rounds and more. Build shortlists and export them instantly.
Login or create a free account to continue reading in private mode.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
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
The DGGI may recommend an ED probe into the company’s transactions after the former identified multiple suspected money laundering transactions, as per reports
Last month, Fino Payments Bank MD and CEO Rishi Gupta was arrested by the DGGI over alleged GST evasion
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.
Unlock special offers and join 10,000+ founders, investors & operators staying ahead in India’s startup economy.
Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the
hottest startup deals, supercharge your innovation projects, and stay updated with expert
curation.
Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn
to validate ideas, acquire customers, secure funding, and navigate the journey to startup
success.
Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence,
understand market landscapes, and decode emerging trends to make informed decisions.
Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful
investors, and keep track of upcoming funds, accelerators, and more.
Join a community of 10,000+ leaders & operators – unlock unlimited access to Inc42 stories,
videos, deals, member-only perks, and more.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Over $250,000 worth deals on software & tools to help your business scale up.
Network with industry leaders & operators with exclusive invites to Inc42’s
member-only virtual events
Enjoy an ad-free and clutter-free
experience as a member, focus on
what really matters to you
Your contribution will go on to
support and empower our unbiased
& data-driven journalism
Join 1000's of entrepreneurs, business leaders & makers and stay ahead with our sharp,
incisive & data-driven analysis on India’s tech and startup economy!
Unlock personalised stories, ad-lite reading, and exclusive newsletters on Inc42.
Tired Of Playing Catchup On Indian Tech?
Stay Ahead. Every Morning at 8
Get The Week’s Most Consequential Developments.
Inc42 In-Depth is your daily 9 PM newsletter with sharp insights from India’s startup economy.
Inc42 Moneyball is your Thursday newsletter on India’s venture capital trends. 4 PM sharp.
Inc42 Markets is your weekly newsletter on tech IPOs & startup stocks. Every Sunday
get access to a list of 200+ family offices betting big on startups
Get access to a list of Alma Mater Of India's Unicorn & Soonicorn Founders
Explore 75,000+ startups, 3,500+ investors, 25,000+ funding rounds and more. Build shortlists and export them instantly.
Login or create a free account to continue reading in private mode.
AI Description
The article discusses a significant drop in Fino Payments Bank's share prices due to reports of a potential investigation by the Enforcement Directorate (ED). This reflects investor concerns over regulatory scrutiny.