Fino Payments Bank gains 4% as Q4 profit zooms 25% to Rs 22 crore

Fino Payments Bank

Fino Payments Bank (FPB) shares gained 4 percent on May 3 after the company reported a 25 percent on-year jump in its consolidated net profit at Rs 22 crore for the quarter ended March 2023.

Net revenue (revenue accounted for product cost) increased 18 percent to Rs 106 crore as against Rs 90 crore a year ago. Total income stood at Rs 323 crore, up 13 percent from Rs 285 crore reported in Q4FY22. Total revenue stood at Rs 314 crore in the December 2022 quarter.

Segment-wise, remittance contributed the highest to total revenue, making up 32 percent of revenue, followed by cash management service (CMS) contributing 20 percent, others 12 percent and business correspondent banking, Aadhaar-enabled payment system, and micro ATM contributing 9 percent each.

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Total deposits for the quarter stood at Rs 1,200 crore, rising 66 percent as against Rs 724 crore as at March 2022. The number of current accounts, savings account deposits (CASA) came in 64 percent higher on a yearly basis to stand at 75.2 lakh as of March 2023 as against 45.9 lakh as at March 2022 with average CASA balance increasing to Rs 1,216 against Rs 1,093.

Total throughput (of transactions) increased 27 percent to Rs 68,000 crore in the reporting quarter, compared to Rs 53,543 core in the year-ago quarter.

“CASA and CMS continue to outperform our expectations and we are very confident of this momentum to continue. This year, we also enhanced on our digital groundwork, the digital throughput gained traction and increased from 16 percent to nearly 23 percent between Q1 FY23 and Q4 FY23,” said Rishi Gupta, CEO and MD of Fino Payments Bank.

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For its FY26 business projections, FPB is aiming at an average CASA balance at Rs 2,000 from Rs 1,216. It also aims to grow the number of customers from 75 lakh to 2 crore, increase total deposits from Rs 1,200 crore to about Rs 3,500 crore, as well as expand its merchant base from 14 lakh to about 20 lakh.

The market capitalization of the company has declined over 20 percent in the last one year but has gained about 10 percent in the last six months. However, at current levels, the company which got listed in November 2021 is trading more than 61 percent below its IPO price of Rs 577 and also ranks among the worst performing IPOs which hit the market in 2021. At 10.22am, the scrip was trading 3.24 percent higher on the NSE at Rs 224.75, while the benchmark Nifty traded 0.30 percent lower at 18,093.70 points.