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Telangana High Court Rejects Fino Payments Bank CEO’s Plea as Shares Slide to Record Low

The ruling heightens legal risk for Fino’s planned shift to a small finance bank.

Fino Payments Bank's stock in the previous session on Tuesday closed 20% lower to close at a 52-week low of Rs 111.60 apiece on the BSE against its previous close of Rs 139.50 per share.

Overview

  • Telangana High Court judges Aparesh Kumar Singh and G. M. Mohiuddin dismissed Rishi Gupta’s writ petition that challenged his arrest and sought bail, with a separate bail plea now before the Special Judge for Economic Offences in Hyderabad.
  • Fino Payments Bank shares closed 20% lower at ₹111.60 after touching an all-time low of ₹112.1, cutting market value to about $100 million from $240 million at the start of the year.
  • Gupta was arrested in late February by the Directorate General of GST Intelligence, which alleges a roughly ₹840 crore GST evasion tied to funds from illegal online gaming routed through shell entities.
  • Fino said operations remain stable and named CFO Ketan Merchant as interim CEO, a move the Reserve Bank of India approved for three months.
  • The bank points to earlier SEBI-flagged complaints and a KPMG probe that found 19 employees ran unauthorised schemes, and its Q3 profit fell 47% to ₹12.3 crore even as it continues work on its RBI-cleared small finance bank transition.