Fino Payments Bank Limited announced its financial results for the quarter ended December 31, 2025, revealing a challenging performance with significant declines in profitability despite maintaining operational efficiency and strong capital adequacy ratios.

Financial Performance Overview

The bank's financial performance for Q3FY26 showed mixed results, with declining revenues and profits but improved capital strength:

Revenue Composition and Trends

The bank's total income of ₹39,441 lakhs comprised interest earned of ₹6,296 lakhs and other income of ₹33,145 lakhs. Interest earned showed growth of 27.6% compared to Q3FY24, rising from ₹4,935 lakhs. However, other income declined significantly to ₹33,145 lakhs from ₹41,199 lakhs in the previous year quarter, representing a 19.5% decrease.

Income on investments contributed ₹4,617 lakhs to total interest earned, while interest on balances with RBI and inter-bank funds added ₹1,679 lakhs. The decline in other income, which primarily relates to fees and commission from various banking services including CASA, micro-ATMs, and digital payment services, impacted overall revenue performance.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the bank's performance showed similar trends:

Capital Adequacy and Financial Ratios

Despite the profit decline, Fino Payments Bank maintained strong capital metrics. The Capital Adequacy Ratio improved to 73.15% in Q3FY26 from 65.78% in Q3FY24, well above regulatory requirements. The bank's net worth stood at ₹55,052 lakhs compared to ₹57,502 lakhs in the previous year.

Earnings per share declined to ₹1.47 (basic) from ₹2.78 in Q3FY24. Return on Assets decreased to 0.27% from 0.63% in the corresponding quarter of the previous year. The debt-equity ratio increased to 1.53 from 1.11, while total debts to total assets ratio rose to 25.27% from 21.16%.

Segment-wise Performance

The bank's segment reporting revealed varied performance across different business lines. Retail Banking generated revenue of ₹12,821 lakhs in Q3FY26 compared to ₹10,538 lakhs in Q3FY24. Treasury operations contributed ₹6,325 lakhs versus ₹4,935 lakhs in the previous year. However, Other Banking Operations revenue declined significantly to ₹20,294 lakhs from ₹30,660 lakhs.

Leadership Changes and Exceptional Items

The board approved the re-appointment of Mr. Prayag Shashikant Gadgil as Head of Internal Audit for a two-year term from February 2, 2026, to February 1, 2028. Mr. Gadgil brings over 25 years of internal audit experience and holds qualifications as Chartered Accountant, Company Secretary, and Certified Internal Auditor.

The bank recognized exceptional items of ₹310 lakhs during the quarter, related to the estimated impact of new labour codes implemented by the Government of India in November 2025. This provision reflects the bank's assessment of additional compliance costs under the consolidated labour law framework.

Fino Payments Bank has received regulatory approval from the Reserve Bank of India for the re-appointment of Mr. Rishi Gupta as Managing Director and Chief Executive Officer. The central bank's approval extends Gupta's leadership tenure until May 2026, providing continuity in the bank's executive management.

Leadership Continuity Secured

The RBI's decision to approve Gupta's re-appointment demonstrates regulatory confidence in his leadership capabilities and the bank's strategic direction. This approval is particularly significant given the stringent regulatory oversight that payment banks operate under in India's financial services sector.

Shareholder Approval Pending

While the RBI has granted its regulatory approval, the re-appointment process is not yet complete. The decision now awaits formal approval from Fino Payments Bank's shareholders, who must vote on the proposal through the bank's established corporate governance procedures.

Next Steps in Corporate Governance

The bank will need to convene the necessary shareholder meetings to seek formal ratification of Gupta's re-appointment. This step represents standard corporate governance practice, ensuring that both regulatory and shareholder interests are aligned in key leadership decisions.

The completion of this process will provide Fino Payments Bank with executive leadership stability as it continues to operate in India's evolving digital payments landscape.