Fino Payments Bank receives complaints about misappropriation of funds; stock slips over 8%
At around 10:11 a.m., shares of Fino Payments Bank were down 1.5 per cent at Rs 325.35 apiece on the BSE, falling for the third straight session. The market capitalisation of the stock stood at Rs 2,698.22 crore.
Shares of Fino Payments Bank, a commercial banking company, slipped as much as 8 per cent in the morning trade, touching the day's low of Rs 304.5 apiece on Thursday, September 21. The selling pressure in the scrip came after the bank said it had received complaints from one of its clients regarding misappropriation of funds, cheating, and forgery.
At around 10:11 a.m., shares of Fino Payments Bank were down 1.5 per cent at Rs 325.35 apiece on the BSE, falling for the third straight session. The market capitalisation of the stock stood at Rs 2,698.22 crore. The stock settled 1.6 per cent lower at Rs 325 apiece on BSE.
"Fino Payments Bank Limited has received complaints from one of its clients in Mumbai and some of its merchants, distributors, and other individuals in Gujarat and Maharashtra through email for non-receipt or repayment of funds pertaining to or invested in potential fictitious schemes allegedly floated by some of the employees of the bank in their personal capacity," the bank's regulatory filing read.
GST collection rises to Rs 1.67,929 lakh crore in November, records highest growth rate of 15% Y-o-Y
Brand Retention | 82% of existing Lava users likely to purchase next smartphone from same brand: Report
D-Street Newsmakers: Flair Writing, New India Assurance, Ashok Leyland among 10 stocks that hogged limelight today
India, Africa to be major contributors to 112 million barrel/day of peak global crude oil demand in 2030: S&P
Further, the bank has appointed KPMG to conduct a detailed independent investigation of the incident. The bank has also filed a police complaint. The investigation so far, prima facie, has indicated that there were unauthorised actions and misrepresentations by the alleged staff.
What do analysts suggest?
"Investors should avoid buying the stock as of now due to the negative news of misappropriation of funds. One can instead focus on other banking stocks that are doing well," said Vikas Sethi, Managing Director, Sethi Finmart Pvt Ltd.
Fino Payments Bank share price: Past performance
In 2023 so far, Fino Payments Bank shares have gained over 31 per cent returns against the Nifty50's rise of over 8 per cent.