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The bank has received complaints from one of its client in Mumbai and some of its merchants / distributors / other individuals in Gujarat and Maharashtra through email for non-receipt / repayment of funds pertaining to / invested in potential fictitious schemes allegedly floated by some of the employees of the bank, in their personal capacity.
The bank said that it has taken required steps including filing of police complaint and regulatory reporting etc. The investigation so far prima-facie indicates that there were unauthorized actions and misrepresentation by the alleged staffs, so also contributory negligence and/or potential collusion on the part of complainants with respect to abnormalities and non-adherence with its regular processes, which seems to have been potentially ignored by the complainants.
While the investigation is currently ongoing, prima-facie the bank is of the view that there is no liability/impact on it and the bank has neither benefitted nor at loss due to these incident(s), therefore there is no requirement of reporting the incident(s) to stock exchanges.
Fino Payments Bank is a subsidiary of Fino Paytech Limited, which is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. The Mumbai‐based bank operates on an asset light business model that principally relies on fee and commission-based income generated from merchant network and strategic commercial relationships.
The bank's net profit jumped 85.1% to Rs 18.70 crore on 20.5% increase in total income to Rs 348.31 crore in Q1 FY24 over Q1 FY23.
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