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News Topical, Digital Desk : The stock saw a sharp decline on Monday. It opened at ₹162, down from a closing price of ₹168.72, and fell to ₹136 during trading. Around 12 noon, the stock was trading at ₹145, down nearly 14%. The company issued a clarification to the exchange amid this decline. However, despite the company's clarification, the stock remains under pressure, raising investor concerns.
Shares of Fino Payments Bank Ltd. saw a sharp decline on Monday, with investors panicking as they opened at ₹162 from a previous close of ₹168.72.
But after the market opened, selling intensified. The stock quickly fell to ₹136. Around 12 noon, it fell nearly 14% to trade around ₹145.
The company's current market cap is around ₹1,200 crore. The decline can be gauged from the fact that the stock has declined by approximately 35% in the past year, and has lost approximately 37% in just one month.
Company issues clarification to the exchange:
Amidst the decline in the stock, the company has issued an official statement to the stock exchange. It has clarified regarding some media reports.
The company stated that reports of the expansion of the PMLA or ED investigation are not factual and are based solely on speculation.
According to Fino Payments Bank, the bank is currently not under the scope of any such investigation, except for the investigation by the Directorate General of GST Intelligence (DGGI).
The company also clarified that the ongoing investigation relates to certain program managers and merchants associated with several banks. This investigation is not directly related to the bank's GST compliance.
Other claims in media reports have also been dismissed as false.
The company has also dismissed a court-related news report as false. According to the company, the media report mentioning the bail denial is completely false. Furthermore, the company clarified that it has no connection with any kind of gaming or betting business. The bank stated that it neither directly nor indirectly promotes such businesses through any platform or website.
What does Fino Payments Bank do?
Fino Payments Bank is a digital payments bank that provides banking and payment services primarily in rural and semi-urban India. After receiving a payments bank license from the RBI in 2017, the company has focused on digital banking services. The bank offers services such as zero-balance savings accounts, UPI, IMPS, debit cards, and bill payments. Mobile recharge, DTH recharge, and merchant payment collection are also included in its services. The company also offers AEPS, an Aadhaar-based payment system, micro ATMs, and cash-in and cash-out services. Fino Payments Bank has a large network and is reported to be present in approximately 90% of the country's districts. The company has a network of over 1.3 million merchant and customer service points.
Being a payments bank, it cannot offer loans.
Fino Payments Bank is a payments bank, so it does not offer loans like traditional banks. A large portion of its revenue is based on fees and commissions. Approximately 85% of the company's revenue comes from this model, primarily through its merchant network.
Investors are now closely monitoring future developments.
Although the company has issued a clarification, the stock remains under pressure. Investors will now be watching for further updates on the investigation and its impact on the company's business. These factors could determine the stock's direction in the coming days.
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