Fino Payments Bank Applies for Small Finance Bank License, Reports Strong Q2 Profits

9 Jan 2024 , 11:07 AM

Fino Payments Bank has submitted an application to the Reserve Bank of India (RBI) for a Small Finance Bank (SFB) license.

The RBI acknowledged the application in a statement on January 8, 2024, stating that they received one application under the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 05, 2019, from Fino Payments Bank Limited.

The decision to transition into an SFB was approved by Fino Payments Bank’s board on July 28. Additionally, the bank has formed a committee to assess the potential corporate restructuring within the group and evaluate associated implications and considerations.

Fino Payments Bank has been actively pursuing customer acquisition and reported an 85 % year-on-year (YoY) growth in profit. The bank expressed its commitment to enhancing sustainability and leveraging its network.

In the second quarter of the financial year 2023-24 (FY24), Fino Payments Bank’s consolidated Profit After Tax (PAT) surged by 41.5 % YoY, reaching Rs 19.5 crore, attributed to robust growth in transactions and the user base.

The bank’s revenue for Q2 FY24 increased by 18.2 % to Rs 358.6 crore compared to Rs 303.3 crore in Q2 FY23.

Total expenditure, excluding provisions and contingencies, witnessed a YoY growth of 16.9 %, reaching Rs 338.50 crore from Rs 289.5 crore in the corresponding period last year.

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