Fino Payments Bank Limited has informed stock exchanges that its application to remove a lien of ₹11.92 crores marked by the Criminal Investigation Department (CID) has been rejected by the Bengaluru court. The bank received the court order dated March 04, 2026 on March 11, 2026 and has decided to challenge this decision through an appeal to the Karnataka High Court.

Background of the Legal Proceedings

The CID had marked a lien of ₹11.92 crores on the bank's account in relation to an ongoing investigation of an incident reported by one of the undertakings of the Karnataka Government. According to the CID office, the accused individuals used the services of four merchants associated with Fino Payments Bank. However, the bank has emphasized that neither the institution nor any of its employees are involved in the said incident.

Court Order Details

The bank had filed an application before the Hon'ble XXIII Additional City Civil & Sessions Judge & Special Judge (P.C. Act) at Bengaluru in March 2025, challenging the lien marked by the CID and seeking its removal. The recent court order dated March 04, 2026 has not accepted the bank's application.

Bank's Response and Next Steps

Following the unfavorable court decision, Fino Payments Bank has announced its intention to challenge the order by filing an appeal before the High Court of Karnataka. The bank maintains its position that it is not involved in the incident under investigation and that the lien marking affects its financial operations.

Regulatory Compliance

The disclosure was made in continuation to the bank's earlier letter dated March 28, 2025 and pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has confirmed that this information will also be made available on its official website at www.fino.bank.in .

Investigation Context

The ongoing CID investigation relates to an incident reported by a Karnataka Government undertaking, where the accused parties allegedly utilized services from four merchants associated with Fino Payments Bank. While the investigation continues, the bank has consistently maintained that it and its employees have no involvement in the matter under scrutiny.

Fino Payments Bank has informed stock exchanges that ICRA Limited has placed the bank's credit rating on Watch with Developing Implications following recent corporate developments. The rating action comes after the arrest of the bank's Managing Director & CEO Rishi Gupta, as disclosed on February 27, 2026.

Rating Details and Action

ICRA has maintained the existing credit rating but added a watch status due to ongoing developments. The rating committee's decision affects the bank's overdraft facilities across multiple banking partners.

Overdraft Facility Breakdown

The rating action covers overdraft facilities distributed across six major banking institutions. The bank maintains credit lines with both public and private sector banks to support its operational requirements.

Regulatory Compliance and Disclosure

The bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The communication was addressed to both BSE Limited and National Stock Exchange of India Limited on March 10, 2026.

Basavraj Loni, Company Secretary & Compliance Officer, signed the regulatory filing from the bank's Navi Mumbai office. The disclosure has been made available on the bank's official website at www.fino.bank.in for stakeholder access.

Rating Watch Implications

ICRA's decision to place the rating on watch follows the bank's stock exchange disclosure regarding the arrest of its MD & CEO and subsequent clarifications issued by the bank. The rating agency emphasized that ratings should be understood solely as opinions and not as recommendations for investment decisions.

The watch status indicates ICRA's ongoing monitoring of developments that could potentially impact the bank's creditworthiness. Sumit Jhunjhunwala, Vice President at ICRA Limited, communicated the rating committee's decision through an official letter dated March 10, 2026.