The Board of Fino Payments Bank has approved the re-appointment of Rishi Gupta as Managing Director & Chief Executive Officer (MD & CEO) for three years, effective from May 2, 2023, the company informed the exchanges on July 27.
The MD’s re‐appointment is based on the recommendations of the Nomination and Remuneration Committee of the payments bank and it is subject to the approval of the Reserve Bank of India (RBI) and Fino Bank shareholders.
“Mr. Rishi Gupta is not related to any director of the bank and is not debarred from holding the office of a director by virtue of any SEBI order or any other such authority,” the bank said.
Gupta, a founding member of the payments bank, has worked with International Finance Corporation (IFC), ICICI Bank, and Maruti Udyog Ltd.
Further, the payment bank’s Board has also approved the appointment of Rakesh Bhartia as independent director, with effect from July 27, 2022 for five years, subject to the approval of the shareholders.
Q1FY23 results
The board approvals come on the heels of the payments bank reporting its Q1FY23 net profit at Rs 10 crore. Revenues during the April-June quarter rose 40 percent on year to Rs 289 crore, as per a release by the payments bank.
Going ahead, increasing the bank’s network through the acquisition of merchant points, customers and digital initiatives remain the key for the company, Chief Financial Officer (CFO) Ketan Merchant told Moneycontrol.
“The focus would be on continuing customer acquisition and CASA deposit momentum, accelerating technology and digital initiatives, and expanding networks. So, by default, my throughput value and transaction momentum continues.”
The total deposits of Fino Payments Bank rose to Rs 581.5 crore as on June-end, higher than Rs 251.25 crore last year.
“We reached a merchant network of 11.42 lakh, which stood at 10.2 lakh or so earlier. So, the network momentum is very clear. We will, on a steady basis, keep on increasing our network for the next couple of years,” Merchant said.
“We are not shying away from investing in digital initiatives as well as technology. We will continue to do these in the coming quarters as well but profitability will continue to be a key driver for us,” he added.
‘Open to opportunities, like becoming a SFB’
Fino Payments Bank has over 50 fintech partners that use the lender’s platform for different transactions, Merchant said, adding that the lender will continue forming such partnerships, going ahead. His comments come at a time when the RBI is increasing its scrutiny of digital lenders.
When asked whether the payments bank will partner with fintechs on credit-based products, like Buy Now, Pay Later, Merchant said: “By virtue of our regulation,” the payments bank cannot be offering this product.
“By virtue of our regulation, we cannot be doing that (credit-line loan products like BNPL)…whether it is a respective business correspondent, merchant or fintech partner, I do not think the current regulations will dampen our spree in terms of fintech partnership.”
On Fino Payments Bank’s ambition to convert into a small finance bank (SFB), Merchant said the lender was still open to “exploring opportunities”, but did not share a timeline for the same.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
