Fino Payments Bank’s board has approved a further three-month extension for Ketan Merchant as interim chief executive officer, maintaining leadership continuity while the bank works through a management transition and advances its proposed conversion into a small finance bank.
The extension will take effect on August 27, 2026, and will run for a period not exceeding three months. It is subject to approval from the Reserve Bank of India. Merchant will remain a key managerial and senior managerial person during the extended term. The decision was made following a recommendation from the board’s Nomination and Remuneration Committee.
Merchant has led the bank on an interim basis since February 27. He initially received a three-month appointment and subsequently obtained another three-month term beginning May 27, which expires on August 26. The latest board action would preserve the current leadership structure through late November unless the bank appoints a permanent managing director and CEO earlier or receives different regulatory instructions. The extension is conditional on RBI approval.
Before becoming interim CEO, Merchant served as Fino Payments Bank’s chief financial officer and head of the organisation. He joined the bank in 2018 and has more than 27 years of banking experience, including previous assignments at HSBC, Standard Chartered and Barclays. His background covers finance, retail banking and balance-sheet management.
Merchant took over after former managing director and CEO Rishi Gupta became unavailable to perform his duties amid a regulatory and investigative matter. The bank subsequently disclosed that Gupta had resigned after a reassessment of his fit-and-proper status. The interim arrangement has therefore extended beyond the initial short-term period contemplated when Merchant first assumed responsibility.
The leadership decision comes during an operationally demanding period. During Fino Payments Bank’s first-quarter FY27 earnings call, Merchant said one of the bank’s most profitable business-to-business operations had been paused for recalibration and could take at least two quarters to relaunch. Management has meanwhile increased its focus on retail customer acquisition, referral lending and the transition toward a small finance bank operating model.
That conversion would broaden Fino’s permitted product set beyond the restrictions applicable to payments banks, subject to regulatory approval and execution. It would also require the organisation to build further capabilities in credit, deposits, risk management, compliance and balance-sheet governance. Merchant’s previous responsibility for finance and balance-sheet management provides continuity across these workstreams while the board’s permanent CEO process continues.
The extension does not constitute a permanent appointment. It preserves the bank’s existing command structure for a defined period and remains dependent on the banking regulator’s consent.
