Fino Payments Bank Charts Path to Profitability Through Cross-Selling and Network Expansion

Fino Payments Bank has outlined its strategy for accelerated profitability, focusing on cross-selling products, expanding its merchant and agent networks, and capitalizing on strong transaction growth in rural and semi-urban markets. This strategic shift comes as the bank navigates industry headwinds while strengthening its focus on Current Account and Savings Account (CASA) offerings.

Financial Performance

For the quarter ended September 30, 2025 (Q2 FY26), Fino Payments Bank reported:

A 12.00% year-on-year decrease in revenue to ₹400.10 crore
A 36.00% year-on-year increase in average deposits to ₹2,306.00 crore
An improvement in EBITDA margin by 2.80% year-on-year to 15.40%
A 14.00% quarter-on-quarter decrease in Profit Before Tax (PBT) to ₹21.20 crore

The bank's financial results reflect a changing product mix leaning towards higher-margin offerings, resulting in a 5.75% year-on-year expansion in net revenue margin to 37.10%.

Strategic Initiatives

Cross-Selling Focus

The bank plans to leverage its existing customer base by offering additional products and services, aiming to increase revenue per customer.

Network Expansion

Fino is committed to growing its merchant and agent networks, particularly in rural and semi-urban areas where transaction growth has been strong.

Digital Adoption

The bank reported a 33.00% year-on-year growth in daily UPI transactions, reaching approximately 1 crore in Q2 FY26. In September 2025, over 57 lakh customers were digitally active, compared to 45+ lakh in September 2024.

CASA Growth

The bank's CASA accounts reached about 1.60 crore, with over 9.10 lakh accounts added in Q2 FY26 alone. Daily account openings increased by 11.00% year-on-year to 9,893.

Customer Retention

Renewal income, a key indicator of customer trust, increased by 36.00% year-on-year to ₹62.00 crore in Q2 FY26.

Challenges and Outlook

Despite the strategic focus on growth, Fino Payments Bank faces challenges:

The traditional business segment (DMT + AePS + MATM) saw a ~46.00% year-on-year decline in revenue, impacted by regulatory changes in November 2024.
The bank is maintaining a risk-calibrated approach in its digital business, which has led to a temporary slowdown.

Rishi Gupta, Managing Director & CEO, commented, "Our focused execution of Transaction, Acquisition and Monetization (TAM) strategy kept us sustain headwinds. We maintained a risk calibrated approach while being resilient and strengthening our digital rail roads. As such we expect H2 FY26 to have enhanced momentum in Digital Payment Services business."

Ketan Merchant, Chief Financial Officer, added, "Despite a challenging business environment, our margins improved by 5.75% on YoY basis. Our EBITDA margin increased by 2.80% YoY to 15.40%. In the evolving regulatory environment our focus has shifted towards enhancing bottom line through increased margin and execution of risk calibrated approach."

As Fino Payments Bank continues to navigate the evolving financial landscape, its focus on digital adoption, network expansion, and cross-selling appears to be setting the stage for potential growth in the coming quarters. The bank's ability to adapt to regulatory changes and capitalize on its strengths in rural and semi-urban markets will be crucial in achieving its profitability goals.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+6.42%	+14.44%	+3.92%	+31.16%	-11.82%	-41.49%

Fino Payments Bank , a key player in India's fintech landscape, has reported a mixed set of financial results for the second quarter. The bank saw an increase in revenue but experienced a decline in profitability compared to the same period last year.

Revenue Growth

Fino Payments Bank reported a total income of ₹601.00 crore for Q2, up from ₹478.00 crore in the corresponding quarter of the previous year. This represents a significant year-over-year growth of 25.73% in the bank's top-line performance.

Profit Decline

Despite the revenue growth, the bank's net profit for the quarter stood at ₹15.40 crore, down from ₹21.20 crore in Q2 of the previous year. This marks a 27.36% decrease in profitability year-over-year.

Key Financial Metrics

Here's a breakdown of Fino Payments Bank's key financial metrics for Q2:

Metric	Current Q2 (₹ crore)	Previous Q2 (₹ crore)	YoY Change
Total Income	601.00	478.00	+25.73%
Net Profit	15.40	21.20	-27.36%
Interest Earned	601.10	477.50	+25.88%
Other Income	3,399.40	4,076.60	-16.61%
Operating Expenses	3,512.10	4,044.30	-13.16%

Operational Highlights

The bank's interest earned saw a substantial increase, rising from ₹477.50 crore to ₹601.10 crore, reflecting a growth of 25.88%. However, other income decreased by 16.61% year-over-year, from ₹4,076.60 crore to ₹3,399.40 crore.

Operating expenses for the quarter decreased by 13.16%, from ₹4,044.30 crore to ₹3,512.10 crore, indicating improved operational efficiency.

Market Position

Fino Payments Bank continues to focus on expanding its digital banking services and financial inclusion initiatives. The bank's ability to grow its revenue in a competitive fintech landscape demonstrates its strong market position and customer acquisition strategies.

As the financial sector continues to evolve with digital transformation, Fino Payments Bank's performance in the coming quarters will be closely watched by investors and industry observers alike.