Fino Payments Bank Touches Fresh 52 Week High On Bullish Outlook For FY25

Shares of Fino Payments Bank touched a fresh 52 week high of INR 448 during intraday trading today (September 5), a couple of days after the company released its annual report for the financial year 2023-24 (FY24). 

Its market cap also zoomed to $442.4 Mn (INR 3,715.52 Cr). Pertinent to note that the year high is still lower than the stocks all time high of INR 582.95.

In its annual report, Fino’s managing director and CEO Rishi Gupta shared that the company’s plans to deepen its competitiveness in the Indian payments ecosystem through business strengthening initiatives. 

In the near future, Gupta said that the bank bids to sustain its “transaction-acquisition-monetisation (TAM)” approach. Further, it plans to graduate transactions towards accounts creation and engagement leading to enhanced revenue visibility, thus it will seek to widen its CMS clientele base, increase mandates and explore UPI opportunities in the B2B space.

“To deepen customer engagement and stickiness, the Bank is expanding its product bouquet by offering referral loans through partnerships that validate the creditworthiness of customers and their needs,” Gupta said. 

Founded in 2007, Fino commenced its operations as a payments bank with effect from June 2017. Its shares were listed at INR 577 on BSE on November 12, 2021. 

The payments bank posted a PAT of INR 24.27 Cr in the first quarter of financial year 2024-25 (Q1 FY25), up 29.7% from INR 18.7 Cr in the year-ago quarter. Revenue from operations grew 25.4% YoY to INR 436.86 Cr in Q1. 

In the quarter, Fino said that over 68,000 new digital accounts were opened on its platform which facilitated 57 Cr UPI transactions. Besides, the payments bank also saw its merchant network rise 25% YoY to 18.1 Lakh.

For the prior fiscal year, the bank’s revenue jumped 20% YoY to touch INR 1,478.4 Cr. It said that this growth came in due to a 40.6% increase in its total transactions to INR 3.58 Cr for the fiscal.  

Digital transactions significantly contributed to this growth in total transactions, surging by 170.8% year-on-year and accounting for nearly 37.0% of the total throughput in FY24. 

“Our new vertical ‘digital payment services’ is growing on a profitable basis and giving the necessary impetus to our TAM (transaction, acquisition and monetisation) strategy,” Gupta said. 

For FY24, the company said that its fastest growing segments were CASA and CMS, which together represented 31% of the total revenue. 

“Looking ahead to FY25, the company anticipates continued growth in the CASA and CMS segments. The other mature businesses like DMT, Micro-ATM, and AEPS are expected to grow between 10-15%. Across the blended portfolio, we project growth rates of approximately 20- 25%. Net revenue margins are expected to remain stable within the current range,” the bank said.