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Fino Payments Bank shares stage swift recovery after 14% plunge on MD & CEO arrestFino Payments Bank MD and CEO Rishi Gupta's arrest was under the GST Act 20217 and SCGST Act 2017. The bank said the investigation is related to its business partners and not related to the GST compliance of the bank.By Shloka Badkar  March 2, 2026, 10:38:56 AM IST (Published)2 Min ReadShares of Fino Payments Bank Ltd. declined up to 14% on Monday, March 2, after the lender's managing director and CEO Rishi Gupta was arrested on Friday. However, the stock has recovered all of those opening losses and even briefly turned positive soon after.

Gupta's arrest was under the GST Act 20217 and SCGST Act 2017. The bank said the investigation is related to its business partners and not related to the GST compliance of the bank.

The lender said it is co-operating to provide all the required information.

The lender said the probe is regarding the business partner(s) of the bank and not to its GST compliance. It said that none of the bank's officials are involved and that the officials are cooperating with the investigation.

A special board meeting of the lender appointed Ketan Merchant as the chief financial officer, as head of the organisation, to oversee the day-to-day operations of the lender.

The bank said the issue is with regards to a GST investigation pertaining to its business partner(s). "The bank and its MD and CEO Rishi Gupta have nothing to do with the action 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," the lender said.

On Saturday, Finance Minister Nirmala Sitharaman replied to industry veteran Mohandas Pai's post on X regarding Gupta's arrest saying, "Thanks for sharing this. Will check". Pai had tagged the Finance Minister asking her to look into it, saying, "How can a CEO of a regulated bank be arrested for an issue with a business partner?"

Shares of Fino Payments Bank are currently trading little changed at ₹191.84. The stock had dropped as much as 9% on Friday as well.

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