Fino Payments Bank is awaiting feedback from the Reserve Bank of India on its application submitted for small finance bank license. Confirming this, Rishi Gupta, Managing Director and CEO, said the application has already been submitted and it is now waiting for feedback and queries from the RBI.
Once this process is complete, said Gupta, the RBI will present the application to its internal committee. He is hopeful that once the in-principle approval is granted, Fino Payments Bank could go live within 12 months, though an exact timeline for the approval is uncertain.
Internally, the bank is making significant changes to prepare for the transition. It is revamping its entire technology and digital infrastructure, which is expected to be operational in the next six months. Additionally, Fino has started building a small credit vertical, collaborating with other non-banking financial companies (NBFCs) to develop its credit business.
Gupta expressed confidence in their ability to launch the small finance bank (SFB) without needing new capital immediately, though fresh capital may be considered as the bank grows.
On the transaction side, Gupta stated a shift in the ecosystem from physical to digital platforms, with more customers moving from cash to Unified Payments Interface (UPI) payments. This aligns with broader changes in customer behaviour.
Also Read: Fino Payments Bank sees decline in debit card use, UPI transactions soar
In Q2FY25, Fino Payments reported a total income of ₹455.4 crore, a 27% year-on-year (YoY) increase from ₹358.6 crore, and a 4.2% quarter-on-quarter (QoQ) rise from ₹436.9 crore. Costs stood at ₹404.43 crore, reflecting a 26.5% YoY and 4.2% QoQ increase. The company’s profit after tax (PAT) was ₹21.1 crore, an 8.1% YoY growth from ₹19.5 crore, but a 13.1% decline QoQ from ₹24.3 crore.
Fino Payments Bank has a market capitalisation of around ₹3,037.74 crore, and its shares have risen by nearly 26% in the past year, indicating strong market performance.
Content retrieved from: https://www.cnbctv18.com/market/earnings/fino-payments-bank-small-finance-bank-license-future-growth-rishi-gupta-19498457.htm.
