Shares of Fino Payments Bank experienced a significant decline, dropping 19.6% to hit a 52-week low of ₹136 per share on the BSE. This slump followed reports suggesting a potential Enforcement Directorate (ED) probe into online gaming transactions associated with the bank. The Directorate General of GST Intelligence (DGGI) may recommend this investigation after identifying numerous suspected money laundering transactions.
In response to the reports, Fino Payments Bank denied the allegations, stating that they are non-factual and speculative. The bank clarified that apart from the ongoing DGGI investigation related to GST evasion, there are no other probes involving the bank. Previously, the Managing Director and CEO of Fino Payments Bank, Rishi Gupta, was arrested by the DGGI over alleged GST evasion charges.
Despite the stock closing 17.3% lower at ₹139.85 per share, the bank reiterated its stance that the GST case is linked to program managers associated with other banks, not directly involving Fino Payments Bank or its management. Following Gupta’s arrest, the bank appointed Chief Financial Officer Ketan Merchant as the interim head to oversee daily operations.
With uncertainties surrounding the potential ED probe and ongoing legal actions, Fino Payments Bank navigates through a challenging period, striving to maintain transparency and operational continuity.
Source: Inc42 Media