SUMMARY
Fino Payments Bank’s PAT saw more than a 15% decline sequentially from INR 22.1 Cr reported in the March quarter of FY23 on the back of rising expenses
The bank’s revenue also increased 21% YoY to INR 348.3 Cr in Q1 FY24
Fino Payments Bank said its board approved the proposal for applying for a Small Finance Bank (SFB) licence
Fino Payments Bank on Friday (July 28) reported an 85% year-on-year jump in its profit after tax (PAT) to INR 18.7 Cr in the June quarter (Q1) of the financial year 2023-24 (FY24), helped by a growing customer base. The Mumbai‐based bank had reported a PAT of INR 10.1 Cr on a revenue of INR 289 Cr in Q1 FY23.
However, Fino Payments Bank’s PAT saw more than a 15% decline sequentially from INR 22.1 Cr reported in the March quarter of FY23 on the back of rising expenses.
The bank’s revenue also increased 21% YoY to INR 348.3 Cr in Q1 FY24. On a quarter-on-quarter (QoQ) basis, the increase in revenue was only 7.7% from INR 323.4 Cr.
In a statement, Fino Payments Bank said its board has approved the proposal for applying for a Small Finance Bank (SFB) licence and also directed forming of a committee to take forward the reverse merger evaluation with its parent entity Fino Paytech Limited.
“We intend to supplement payments bank business with lending to known customers through enhancement of licence. Our opportunity to grow by converting to SFB is significant on the back of optimal leveraging of our widespread network to cater the unmet credit demand of our merchants and customers,” said Rishi Gupta, CEO and MD of Fino Payments Bank, in a statement.
Gupta added that Fino’s core business activity will continue to be that of a banking service provider to the existing target segment with credit as an additional service offering.
It is pertinent to note that Q1 FY24 saw the highest-ever quarterly revenue in the bank’s history. The company said that it would continue to aim for 20% YoY growth, focusing on customer ownership business and high-margin products.
As per the company’s statement, the quarter under review was its first-ever quarter where the total throughput crossed INR 75,000 Cr. Meanwhile, its digital throughput zoomed 94% YoY to INR 18,351 Cr, comprising 24% of overall throughput in Q1.
In Q1 FY24, Fino also opened 7.7 Lakh bank accounts, up 24.4% YoY, while about 41 Cr transactions were processed in the Fino ecosystem, up 63% YoY, it said.
The company continues to see a rise in its distribution networks as the number of registered merchants climbed 26% YoY to 14.4 Lakh.
On the expenses front, Fino’s total expenditure, excluding provisions and contingencies, grew to INR 329.6 Cr in Q1 FY24 from INR 278.9 Cr in the corresponding quarter of the previous fiscal.
Its employee cost increased 8.4% YoY and 7% QoQ to INR 42.7 Cr in Q1 FY24.
Along with its quarterly results, Fino also announced increasing its authorised share capital of the bank to INR 90 Cr from INR 85 Cr earlier.
The shares of Fino touched their 52-week high and hit the upper circuit of INR 350.15 on the BSE today, ahead of the declaration of its results. The shares ended today’s sessions at INR 343.9, up almost 18%.
