Fino Payments Bank MD and CEO Rishi Gupta arrested; CFO Ketan Merchant takes charge

Fino Payments Bank Ltd on Friday (February 27) said its Managing Director and CEO, Rishi Gupta, has been arrested under the CGST Act, 2017 and the SGST Act, 2017.”…we would like to inform that an arrest has been made of Rishi Gupta, Managing Director (“MD & CEO”) of Fino Payments Bank Limited (“Bank”) under the provisions of section 132(1)(a) and 132(1) (i) of the CGST and SGST Act, 2017, respectively on February 27, 2026,” according to a stock exchange filing.

The bank said the investigation relates to business partners of the bank and not to its GST compliance. It stated that none of the bank’s officials is involved and that officials are cooperating with the investigation.
Also Read: RBI gives in-principle nod for Fino Payments Bank to become small finance bankThe arrest has been made only in respect of Rishi Gupta. The bank said there is presently no impact on its operations or financials and that any future impact will be disclosed to the stock exchanges. The matter remains under review.

A special board meeting was convened today, during which it appointed Ketan Merchant, Chief Financial Officer, as Head of the Organisation to oversee the bank’s day-to-day operations in the absence of Rishi Gupta, until otherwise decided by the board or until he resumes office, whichever is earlier.

Ketan Merchant, Chief Financial Officer, Fino Payments Bank Ltd, said, “Further to our stock exchange disclosure dated February 27, 2026, the Bank wishes to inform that we have strong corporate governance, compliance framework and robust processes in place. As a regulated entity, we are compliant with all the laws, including GST.

Also Read: Fino Payments Bank shares slip 9% despite RBI nod to SFB transitionThe issue is with regard to a GST investigation pertaining to our business partner(s). The Bank and its MD & CEO, Rishi Gupta, have nothing to do with the actions of the business partner(s). We have full faith in the country’s judiciary and will continue to extend full cooperation and assistance to the authorities in the ongoing process.

We would like to further assure our customers, investors and all our stakeholders that our business operations will continue uninterrupted and there will be no impact on our services. We stand committed to deliver on our customer centricity.”

Third Quarter Results

For Q3, Fino Payments Bank’s net profit rose 1.3% year-on-year to ₹23.1 crore from ₹22.8 crore. Sequentially, profit grew 9% from ₹21.15 crore. Net interest income (NII) surged 34.7% year-on-year to ₹23.7 crore, while revenue increased 25% to ₹461.3 crore.

Revenue growth was driven by strong growth in its digital payments business, which contributed 24% of total revenue, up from 8% in Q3 FY24. EBITDA saw a 19% year-on-year increase to ₹60.2 crore.

Also Read: Fino Payments Bank Q1 Results | Net interest income jumps 53% but profit dwindles

Shares of Fino Payments Bank Ltd ended at ₹192.45, down by ₹15.60, or 7.50%, on the BSE.