CFO Ketan Merchant Appointed to Lead Fino Payments Bank After CEO’s Arrest

Another big piece of news emerged from the banking industry. This is regarding Fino Payments Bank. The Managing Director and CEO of the bank, Rishi Gupta, was arrested on Friday. Gupta was arrested under the CGST and SGST Acts. This news was shared by the bank itself in a regulatory filing.

The shares of Fino Payments Bank will see a decline due to this piece of news. On Friday, the shares declined by 7.11% on the NSE and closed at ₹193.49.

In an exchange disclosure under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Regulations, the bank clarified that the investigation relates to a business partner and is not related to its own GST compliance. The bank has immediately implemented governance changes through a special board meeting to ensure operational continuity.

Rishi Gupta was arrested under sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017. The grounds for arrest were issued on February 27, 2026, at 03:55 am (IST). The investigation relates to the bank's business partners and is not related to the bank's GST compliance.

The bank stated that it is actively taking appropriate steps to address the situation. It further stated that Chief Financial Officer Ketan Merchant has been appointed to head the organization and oversee day-to-day operations.

A special board meeting was convened on Friday, February 27th, in which Chief Financial Officer Ketan Merchant was appointed Head of the Organization. He will oversee the day-to-day operations of the bank in Rishi Gupta's absence. This will be until the board decides otherwise or until he returns to the office, whichever is earlier.

This arrest is only related to Rishi Gupta's case. The bank stated that there has been no immediate impact on its operations or finances, and that any future impact will be communicated to the stock exchanges. The matter is currently under review.