Fino Payments Bank saw its shares slide nearly 7.5% in the opening hours on Thursday after the small-cap payments bank disclosed that it received complaints about misappropriation of funds, cheating and forgery. 

In an exchange filing dated September 20, the bank said that it received complaints through email from one of its clients in Mumbai and some of its merchants, distributors and other individuals in Gujarat and Maharashtra for non-receipt or repayment of funds invested in potential fictitious schemes allegedly floated by some of its employees in their personal capacity. 

Prior to filing a police complaint, the bank had appointed KPMG to conduct a detailed independent investigation of the incident. So far, the investigation has indicated that there were unauthorised actions and misrepresentations by the alleged staff, possibly contributing to negligence and/ or potential collusion on the part of the complainants. 

The banking company believes that none of the complainants have filed any complaint against it for pursuing the recovery with any law enforcement agency and that it has neither benefited nor is at a loss due to the incidents. Further, the ongoing investigation will have no liability or impact on the bank. 

Shares of Fino Payments Bank touched an intraday low of Rs 305.50, down more than 7.5% from the previous closing price on the National Stock Exchange (NSE). At 02:20 pm, the stock was trading at Rs 320.40, 3% lower than the last closing price.