Fino Payments Bank Shares Drop 11% Following Approval for Small Finance Bank Transition

Fino Payments Bank shares plummeted Monday even after it received an in-principle license to convert itself into a small finance bank.

The stock closed 11.35% lower at Rs 278.95 on BSE while falling 12.74% to Rs 274.60 on NSE.

On BSE, the bank’s share opened higher at Rs 324.65 as compared with the previous close of Rs 314.65 but then started falling on continuous selling pressure. The intra-day low was recorded at Rs 271.95. The Sensex closed 0.71% lower Monday.

Before Monday’s sharp fall, Fino’s share price saw over 18% jump since November 25.

The Reserve Bank of India awarded the in-principle license to Fino on Friday and has given a 18-month transition period while its holding company Fino Paytech will need to bring down the stakes of some of its key investors.

Bharat Petroleum Corp (BPCL) holds 21.88% while Blackstone GPV Capital Partners (Mauritius) owns 14.04% in the holding company, according to people in the know. These entities would need to bring down their holding in Fino Paytech, which in turn holds 75% in the bank.