Fino Payments Bank applies for SFB license with RBI

Fino Payments Bank applies for SFB license with RBI

Fino Payments Bank has applied for a small finance bank (SFB) license with the Reserve Bank of India (RBI).

“During the quarter ended December 31, 2023, the Reserve Bank of India has 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,” RBI said in a statement on January 8.

On July 28, the bank’s board approved the proposal for the transition of the bank into an SFB. The payment bank also stated that they have constituted a committee to explore the possibility of group corporate restructuring and evaluate its implications and other considerations.

"The Bank continues its thrust on acquiring new customers and has registered an 85 percent year-on-year (YOY) growth in profit. With each passing quarter, the Bank is progressively enhancing its sustainability and is well-positioned to leverage its network," the bank had earlier said.

Fino Payments Bank’s consolidated profit after tax (PAT) jumped 41.5 percent year-on-year (YoY) to Rs 19.5 crore in the second quarter of the financial year 2023-24 (FY24) on the back of strong growth in transactions and user base. The bank had reported a PAT of Rs 13.8 crore last year.

The bank’s revenue increased 18.2 percent to Rs 358.6 crore from Rs 303.3 crore in Q2 FY23. Total expenditure, excluding provisions and contingencies, grew 16.9 percent to Rs 338.50 crore from Rs 289.5 crore in the year-ago period.