Fino Payments Bank's board has accepted the early retirement request of MD and CEO Rishi Gupta, who stepped down to pursue external opportunities. The resignation comes despite the board finding him 'fit and proper' after reviewing documents and seeking legal opinions. According to the latest exchange filing, Gupta sought voluntary retirement to pursue new opportunities. The resignation comes a few months after his arrest in a GST-related case, for which he was granted bail after 27 days.
Gupta was arrested over alleged goods and services tax (GST) evasion linked to the real money gaming (RMG) sector. As reported by Business Standard, all forms of RMG have been banned in India since August last year. The bank's board stated that based on available documents, including legal opinions and reports received, no prima facie case could be made out against Mr Rishi Gupta. Gupta was granted bail by the Special Judge for Trial of Economic Offences Cases in Hyderabad in March, nearly a month after his arrest.
In his letter to the board, Gupta expressed his intention to explore opportunities outside the banking sector. According to Business Standard, Gupta stated that 'it gives me immense pride that Fino is the only Payments Bank to receive the in-principle approval of RBI for conversion to Small Finance Bank'. He added that 'after investing two decades in Fino, I feel it is an appropriate time to rediscover my purpose outside the Bank and explore new avenues that excite and challenge me in newer ways'. The bank also confirmed that Gupta was 'fit and proper' to continue as the MD and CEO.
The bank has made interim leadership appointments to ensure continuity during the transition period. As reported by Business Standard, Anup Agarwal's tenure as interim chief financial officer was also extended for up to three months from July 6. The board approved the extension of Ketan Merchant's tenure as interim chief executive officer for up to three months from May 27, subject to RBI approval. These appointments provide stability while the bank navigates the regulatory approval process for its transition to a small finance bank.
The bank has assured customers and stakeholders about seamless operations during the leadership transition. According to the latest exchange filing, 'The bank shall continue to ensure seamless continuity of its operations and services to its customers and stakeholders and shall continue to focus on the operationalisation of small finance bank license within the stipulated timelines prescribed by the Reserve Bank of India'. This statement emphasizes the bank's commitment to maintaining business continuity while pursuing its regulatory transformation goals.
