Fino Payments Bank announced its audited financial results for FY26 at a board meeting held on April 29, 2026, reporting significant profitability challenges across both quarterly and annual metrics. The bank's board approved the audited financial results along with the unaudited Q4 results, while also making key leadership decisions. Subsequently, the bank published these results in newspapers on April 30, 2026, pursuant to Regulation 47 of SEBI Listing Regulations.

Annual Financial Performance

The bank's annual performance reflected substantial headwinds. Net profit for FY26 declined 43% to ₹5,246 lakhs from ₹9,253 lakhs in the previous fiscal year. Total income decreased 14% year-on-year to ₹1,58,793 lakhs from ₹1,84,710 lakhs in FY25. Interest earned showed positive growth of 27% to ₹24,818 lakhs from ₹19,523 lakhs, primarily driven by income on investments which increased to ₹18,136 lakhs from ₹15,174 lakhs.

Q4 Performance Highlights

The fourth quarter performance showed continued pressure on profitability. Net profit for Q4 dropped significantly to ₹710 lakhs compared to ₹2,400 lakhs in the corresponding quarter of the previous year, representing a 70% decline. Total income for the quarter decreased to ₹33,998 lakhs from ₹49,349 lakhs year-on-year. Interest earned during Q4 increased 21% to ₹6,410 lakhs from ₹5,278 lakhs, while other income declined 37% to ₹27,588 lakhs from ₹44,071 lakhs.

Balance Sheet and Capital Position

Despite profitability challenges, the bank demonstrated strong balance sheet fundamentals. Total deposits grew substantially to ₹2,37,949 lakhs from ₹1,93,944 lakhs in the previous year. The Capital Adequacy Ratio improved to 83.95% from 80.45%, significantly above regulatory requirements. Net worth increased to ₹60,391 lakhs compared to ₹57,186 lakhs in FY25. Total assets expanded to ₹5,31,190 lakhs from ₹4,20,593 lakhs, while borrowings increased to ₹1,53,530 lakhs from ₹83,946 lakhs.

Board Decisions and Leadership Changes

The board meeting resulted in key decisions regarding leadership continuity. The board approved the re-appointment of Mr. Aninda Mukherjee as Chief Risk Officer for a three-year term effective from May 3, 2026, to May 2, 2029. Mr. Mukherjee brings over 28 years of experience in banking and financial risk management, having previously served in senior roles at The Royal Bank of Scotland and ABN AMRO Bank.

Investor Engagement and Earnings Call

Following the financial results announcement, Fino Payments Bank conducted an earnings call with investors and analysts on April 30, 2026, to discuss the audited financial results for FY26 and unaudited Q4FY26 results. The bank has made the audio recording of this earnings call available on its website pursuant to Regulation 30 of SEBI Listing Regulations. Company Secretary Basavraj Loni confirmed the availability of the audio recording and noted that the investor presentation for the call was already submitted to stock exchanges on April 29, 2026.

Regulatory Compliance and Disclosure

Following the board approval, Fino Payments Bank published its audited financial results for FY26 and unaudited Q4FY26 results in newspapers on April 30, 2026. The publication appeared in Financial Express (English), The Free Press Journal (English), and Navshakti (Marathi) newspapers, fulfilling the requirements under Regulation 47 of SEBI Listing Regulations. The bank's Company Secretary Basavraj Loni confirmed that the disclosure is also available on the bank's website at www.fino.bank.in .

Exceptional Items and Strategic Developments

The bank recognized exceptional items of ₹439 lakhs during FY26, including a one-time impact of ₹4.4 crores related to the implementation of new Labour Codes. The bank received in-principle approval from the Reserve Bank of India on December 5, 2025, to transition into a Small Finance Bank and has appointed an external consultant to support this strategic initiative. The statutory auditors issued an unmodified opinion on the financial results for FY26.

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Fino Payments Bank has successfully completed its Core Banking System migration to Finacle, marking a significant milestone in the bank's digital transformation journey. The strategic initiative involved an investment of approximately ₹200 crore to establish a scalable, modular, and future-ready technology platform supporting the bank's transition to Small Finance Bank status.

Strategic Investment and Implementation

The migration was executed through a carefully phased approach, with temporary moderation in business volumes during implementation to prioritise system stability and data integrity. Despite the scale and complexity involved, the transition was completed within the anticipated timeline, demonstrating strong execution and operational discipline.

Leadership Perspective on Digital Transformation

Ketan Merchant, Interim CEO, commented on the development: "This migration represents a strategic investment of over ₹200 crore in building a robust digital foundation for the future. The new modular architecture allows efficient growth across liabilities, lending, and payments. It also significantly accelerates product launches, strengthening our readiness for the SFB journey."

Vinod Kumar, Chief Information Officer, added: "Finacle CBS delivers a step change in our technology capabilities. Its agile, scalable design enhances transaction throughput, improves system resilience, and shortens time-to-market across UPI, CASA transactions, merchant portal solutions, and upcoming lending platforms, creating a more integrated digital ecosystem."

Enhanced Technology Capabilities

The upgraded architecture introduces a decoupled, modular framework that allows independent scaling of business lines while improving processing efficiency. Key technological enhancements include:

• Enhanced transaction throughput and system resilience
• Shortened time-to-market for new products and services
• Improved integration across merchant platforms
• Support for virtual cards and National Common Mobility Card (NCMC)
• Extended Finacle license for upcoming Loan Management System (LMS)

The bank's 'Hollow the Core' (HTC) initiative further strengthens the architecture by offloading high-frequency transactions from the core system, improving performance and reducing failure rates.

Business Performance and Market Position

Fino Payments Bank processed ₹3.60 lakh crore in transactions, representing an 8.00% year-over-year increase, with 55.00% digital throughput. The bank operates as a technology-led, asset-light digital bank serving emerging India, backed by marquee investors including ICICI Group, BPCL, Blackstone, LIC, and IFC.

Small Finance Bank Transition

The bank received 'In-principle' approval from RBI to convert into a Small Finance Bank, making it the first Payments Bank to achieve this distinction. The Finacle CBS migration positions the bank strategically for this transition, providing the technological foundation necessary for expanded banking services and enhanced financial inclusion capabilities.