Fino Payments Bank Limited — Important, 24-01-2025: General Updates

Fino Payments Bank has communicated updates regarding alleged misappropriation of funds involving complaints from clients in Mumbai, as well as merchants and individuals in Gujarat and Maharashtra. The complaints relate to non-receipt and repayment of funds tied to fictitious schemes promoted by certain identified employees of the Bank. Following an independent investigation by KPMG, it was determined that the Bank itself incurs no liability or loss from these incidents, and supporting documentation for the alleged claims has not been provided by complainants. The total complained amount is roughly ₹35.55 crore. The Bank has taken corrective actions, which include terminating employment for involved staff members and filing police reports against them. Additionally, agreements with potentially colluding merchants are being reviewed for possible termination. The Bank's proactive measures and its view of no direct impact suggest a positive outlook moving forward, although shareholders should remain vigilant regarding any developments tied to these incidents.