Fino Payments Bank's stock hits year-low on CEO's arrest
Business
Fino Payments Bank's stock dropped 14% to a year-low early Monday after CEO Rishi Gupta was arrested over GST-related charges, but quickly recovered and traded steady by midday.
The arrest comes right as the bank is in the middle of an important RBI-mandated transition to boost its lending game.
RBI is watching closely as Fino tries to ramp up lending
Losing a CEO is tough anytime, but it hits harder during a key growth phase. CFO Ketan Merchant has stepped in as acting head while things settle.
The investigation mainly targets program managers associated with multiple banks over alleged GST violations—not Fino's own tax practices—so the bank says there's no direct financial impact for now.
Fino's shares rebounded by midday
Fino's shares rebounded by midday.