Fino Payments Bank navigating growth amidst controversy.
Shares of Fino Payments Bank experienced a significant surge, hitting the upper circuit after a previous day’s slump. As of 15:22 PM on the BSE, the company’s shares were locked at a 9.99% increase, trading at ₹122.75, with a market capitalization of approximately $108.8 million (₹1,021.51 Cr).
The stock’s resurgence follows the company’s announcement of robust growth in its referral lending business during the ongoing fourth quarter of FY26. Fino Payments Bank reported disbursements reaching ₹540 Cr in the current quarter and anticipates closing with ₹630 Cr, which is about 90% of the ₹700 Cr disbursed in the first nine months of the fiscal year. The company projects nearly ₹1,300 Cr in disbursements for the entire fiscal year.
Fino Payments Bank attributes the growth to increased demand in rural and semi-urban markets, where its merchant network and NBFC partnerships have facilitated expanded access to credit facilities. The bank’s lending portfolio includes secured products like home loans, gold loans, loans against property, and business loans for merchants.
The rally occurs despite recent challenges, including the stock hitting an all-time low of ₹110.1 earlier in the day and a 20% drop the previous day, closing at ₹111.6. These declines followed the arrest of MD and CEO Rishi Gupta by the Directorate General of GST Intelligence (DGGI) amid allegations of tax evasion linked to online betting platforms.
Gupta’s arrest is tied to a probe into alleged tax evasion of over ₹840 Cr. Investigators claim Gupta was part of a network routing funds from illegal gaming platforms through shell entities. Gupta’s plea for relief was dismissed by the Telangana High Court on March 23.
Despite these events, Fino Payments Bank maintains that its operations remain unaffected, with stable customer balances and transaction volumes. The bank continues to add approximately 10,000 CASA accounts daily and has appointed CFO Ketan Merchant as interim CEO. Earlier, KPMG was appointed to investigate fraudulent investment schemes linked to employees, revealing that 19 employees ran unauthorized schemes between December 2021 and April 2023.
Fino Payments Bank is focused on expanding its credit vertical as part of its transition into a small finance bank (SFB), having received in-principle approval from the Reserve Bank of India in December 2025. The company asserts that the SFB transition remains on track.
However, the company has faced financial pressures, with a 47% YoY decrease in net profit to ₹12.3 Cr in Q3 FY26 and a 15% YoY decline in total income to ₹394.4 Cr, primarily due to a drop in its core transaction business.
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