Fino Payments Bank Shares Rebound Following 'Misappropriation of Funds' Allegation
Fino Payments Bank witnessed a rebound in its shares after a 7 per cent decline, following reports of alleged misappropriation of funds associated with schemes introduced by the bank's employees in their personal capacity. The bank promptly took action, filing a police complaint and notifying regulatory authorities after an internal and independent investigation conducted by KPMG.
In an official statement, Fino Payments Bank revealed that it had received complaints from clients in Mumbai and various individuals in Gujarat and Maharashtra via email regarding non-receipt or repayment of funds related to purported fictitious schemes initiated by certain bank employees on a personal basis. The bank, however, asserted that it does not consider itself liable and anticipates no adverse impact from this misappropriation. The complainants, it suggested, may have overlooked standard procedures during their transactions.
While the investigation is ongoing, the bank has preliminarily concluded that it bears no liability or impact from these incidents, and therefore, there is no obligation to report these events to the stock exchanges. The preliminary findings indicate unauthorised actions and misrepresentation by the implicated staff, along with potential contributory negligence or collusion by the complainants, resulting in irregularities and non-compliance with the bank's standard processes.
It is worth noting that the complainants have not taken any legal action against the bank to recover the allegedly misappropriated funds.
As of 1 pm, Fino Payments Bank's stock was down by 2.76 per cent at Rs 321.20 on the National Stock Exchange.
