Fino To Take Call On Rishi Gupta’s Reappointment As CEO, MD After RBI Review

Fino Payments Bank has deferred seeking shareholders’ nod on the reappointment of its CEO and MD Rishi Gupta after his arrest in a GST evasion case.

The troubled bank had sought shareholders’ approval for payment of remuneration to Gupta for FY25 and his reappointment as CEO and MD for 3 years, starting from May 2026 to May 2029. However, Fino’s board has now decided to defer the nod for Gupta’s reappointment. 

The payments bank, in an exchange filing, said it will seek the shareholders’ approval for reappointment at an “appropriate time”, subject to compliance with various regulatory provisions and re-assessment of the fit and proper status of Gupta by the board’s nomination and remuneration committee (NRC) and after a view is taken by the RBI in this regard. 

“The candidature of Gupta for his reappointment as MD & CEO of the bank remains unaffected and is in no manner withdrawn, abandoned or prejudiced by this action,” it added. 

Notably, the RBI approved the reappointment of Gupta as Fino Payments Bank’s MD and CEO in January this year. However, the situation has changed following Gupta’s arrest.

The Hyderabad unit of the Directorate General of GST Intelligence (DGGI) arrested Gupta last month in connection with a GST investigation into alleged online betting-linked tax evasion of over ₹840 Cr. 

The DGGI has alleged that Gupta was a part of a syndicate that channelled funds from illegal online gaming platforms through shell entities and programme managers.

However, Fino has claimed that the investigation pertains to programme managers from various banks and has nothing to do with the payments bank’s GST compliance. 

Yesterday, the special judge for trial of economic offences cases, Hyderabad granted bail to Gupta. This came after the Telangana High Court (HC) dismissed his writ petition seeking bail earlier this week. 

Following Gupta’s arrest, Fino had appointed CFO Ketan Merchant as interim CEO and set up a committee of senior executives and board members to oversee operations. 

In December last year, Fino received in-principle approval from the RBI to convert into a small finance bank (SFB). After the CEO’s arrest, the bank said that it remains focused on its transition into a SFB. 

The payments bank’s shares have been under pressure since the arrest of Gupta. The stock has tanked over 35% since his arrest. Shares of the bank were trading 3.10% higher at ₹126.55 on the BSE at 13:10 IST. 

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