Fino Payments Bank Share Price Crashes to Record Low – Here’s Why

On Tuesday, the weakness persisted as the stock traded in negative territory, declining 0.5% and touching another all-time low of ₹135.87 per share. In comparison, the benchmark Nifty 50 was marginally down by 0.04% at 23,400, highlighting the stock-specific nature of the decline.

Reports Link Transactions to Online Gaming Platforms

According to media reports, certain online gaming transactions linked to the bank could come under scrutiny from the Enforcement Directorate. The development is reportedly part of a broader probe into suspected irregularities and tax evasion within the online betting and gaming ecosystem.

In this context, agencies such as the Directorate General of GST Intelligence are said to be reviewing financial flows associated with these platforms. The investigation focuses on large volumes of transactions processed through digital payment systems to identify any violations, including possible money laundering or tax evasion. These developments have raised concerns across the fintech and digital payments sector.

Fino Payments Bank Issues Clarification

Fino Payments Bank has categorically stated that it is not under any investigation by the Enforcement Directorate. The bank clarified that it has not received any official communication from the agency and described the reports circulating in the market as speculative.

The company emphasized that it remains fully compliant with all regulatory requirements and continues to cooperate with authorities whenever required. It further clarified that any review by investigative agencies pertains to certain merchants or third-party program managers, and not the bank itself. According to the bank, its role is limited to providing payment infrastructure while ensuring adherence to compliance procedures during partner onboarding and transaction processing.

Legal Battle Over Frozen Funds

Separately, Fino Payments Bank is approaching the High Court of Karnataka to seek the release of ₹11.92 crore that has remained frozen for nearly a year. The issue dates back to March 2025, when the Criminal Investigation Department (CID) froze the funds while probing a case involving a suspect who allegedly used four local merchants of the bank for transactions.

The bank has maintained that neither the institution nor its employees were involved in any wrongdoing, asserting that the matter is limited to the actions of external merchants. After a local court declined to unfreeze the funds, the bank has decided to immediately appeal the decision to recover its capital and clear its position.

Fino Payments Bank Business Performance Remains Strong

Despite the ongoing concerns, Fino Payments Bank continues to report steady business performance. As of March 14, 2026, the bank’s total deposits reached a record high of approximately ₹2,900 crore, marking a growth of nearly 9% over the previous two weeks.

Customer acquisition also remains strong, with around 1.5 lakh new accounts opened since late February, translating to roughly 10,000 accounts added daily. The growth reflects continued customer trust in the bank’s “phygital” model, which combines neighbourhood merchant networks with digital banking solutions to enhance accessibility across India.

Institutional Outreach to Address Market Sentiment

In an effort to maintain transparency and address investor concerns, Fino Payments Bank conducted a high-level institutional meeting on March 16, 2026. The bank’s representatives met with Deep Financial Consultants Pvt Ltd at the Bandra-Kurla Complex in Mumbai.

This outreach comes amid the circulation of speculative reports regarding external investigations. The bank reiterated that its role is limited to providing payment infrastructure and reaffirmed its commitment to full regulatory compliance while continuing to cooperate with authorities as required.