Fino Payments Bank shares fall 11% after small finance bank gets approval

Shares of Fino Payments Bank fell on Monday after it received an in-principle license to transform itself into a small finance bank.

The stock fell 11.35% to close at Rs 278.95 on the BSE while 12.74% closed at Rs 274.60 on the NSE.

On the BSE, the bank’s share was earlier Rs. 314.65 as against a close of Rs. It opened at a high of 324.65, but then started to decline due to sustained selling pressure. The intra-day low was Rs. 271.95 was recorded. The Sensex closed down 0.71% on Monday.

Before Monday’s sharp decline, Fino’s share price had risen more than 18% since Nov. 25.

The Reserve Bank of India on Friday granted Fino an in-principle license and an 18-month transition period during which its holding company Fino Patek will be required to bring down the stake 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 institutions will have to reduce their holdings in Fino Patek, which in turn holds 75% in the bank.