Fino Payments Bank Share Price Crashes 19%, Hits Record Low Amid Probe Concerns

Fino Payments Bank share price (NSE: FINOB) dropped by 19% in intraday trade, hitting an all-time low of around ₹113.55.

• Stock was trading near ₹114, down about 18%
• Fall came despite a positive broader market, with the BSE Sensex rising over 1%
• Trading volumes more than doubled, showing heavy selling pressure

Fino Payments Bank Share Price Movement

The stock has been under strong pressure:

• Down 25% in the last 2 trading sessions
• Fell 33% in 7 days
• Dropped 45% in 1 month

This decline is much steeper compared to the broader market fall.

Why Is the Fino Payments Bank Share Price Falling?

The sharp fall is linked to reports of a possible investigation:

• The Directorate General of GST Intelligence (DGGI) is probing certain transactions
• Reports suggested a possible probe by the Enforcement Directorate (ED) over money laundering concerns

However, Fino Payments Bank Ltd clarified that:

• It is not involved in betting or gaming activities
• It is not under any ED investigation
• The issue relates to some partners and merchants, not the bank itself

The situation worsened after CEO Rishi Gupta was arrested in February under GST-related laws.

• CFO Ketan Merchant is currently handling operations
• Rating agency ICRA has placed the bank’s ratings on “Watch with Developing Implications”

Business and Liquidity Position

Despite the issues, some positives remain:

• Deposits have stayed stable
• Transactions and account openings continue normally
• As per Reserve Bank of India rules, most deposits are invested in government securities, ensuring liquidity safety

Read More: H.G. Infra Engineering Wins ₹401.33 Crore Railway Infrastructure Project in Madhya Pradesh!

Conclusion

Fino Payments Bank stock is under heavy pressure due to regulatory concerns and negative sentiment. While the bank denies wrongdoing and operations remain stable, uncertainty around the probe continues to weigh on the stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.