Fino Payments Bank shares fell on Monday after the company's parent, Fino Paytech, voted against a resolution to reappoint its Chairman and Independent Director Mahendra Kumar Chouhan and Independent Director Puneeta Kumar Sinha.

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The stock of Fino Payments — in which Fino Paytech holds a 75 percent stake — dropped by as much as Rs 20.3 or 6.8 percent to Rs 278.2 on BSE.

The move leaves the bank with no one at the helm as around 80 percent of its shareholders, including 100 percent of the promoter group, voted against the reappointment of the chairman. Chouhan had been appointed by the promoters including Blackstone, BPCL, LIC, Union Bank, ICICI Lombard and ICICI Bank.

"We, at Fino Payments Bank, would like to place on record the significant contribution made by our outgoing independent directors over the past five years. Their term has come to an end and we will miss their strategic steer," said Fino Payments Bank.

"Further, as a listed entity, their extension was approved by the Bank Board and we have followed the due process and all the relevant information is in the public domain and has been communicated to the regulator and the exchanges," the bank said.

In the meeting, held on Friday, the company also voted against a resolution to bring about amendments to the conditions of the bank's employee stock options.

Sinha and Chouhan have been on the board of Fino Payments Bank since May 2017. The bank got its principal licence in 2015, after which it began its operations in June 2017.

In November 2021, the bank’s shares debuted on the bourses at Rs 544, a discount of over five percent over its issue price of Rs 577. The bank’s Rs 1,200-crore initial public offering was subscribed more than two times.

(With PTI inputs)

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First Published:May 2, 2022 1:41 PM IST