Fino Payments Bank Limited (FPBL) has disclosed that the Goods and Services Tax (GST) authorities have initiated a search at its registered office. The search, which began on November 10, 2025, is being conducted under Section 67(2) of the Maharashtra Goods and Service Tax Act, 2017.

Details of the Search

Bank's Response

FPBL has stated that it is fully cooperating with the authorities by providing the requested data. The bank has promptly disclosed this information to stock exchanges in compliance with the Securities and Exchange Board of India (SEBI) listing regulations.

Potential Implications

As of now, the bank has not provided any details regarding:

• The specific reasons for the search
• Any alleged violations or contraventions
• Potential impact on the bank's financial or operational activities

The proceedings are ongoing, and more information may become available as the situation develops.

Investor Considerations

While the search is a significant event that warrants attention, it's important to note that such regulatory actions are part of normal business operations in the banking sector. Investors and stakeholders should monitor further updates from the bank and official sources for a comprehensive understanding of the situation.

Fino Payments Bank Limited, with its registered office in Navi Mumbai, continues to operate under CIN: L65100MH2007PLC171959.

As this is a developing situation, stakeholders are advised to stay informed through official channels and regulatory filings for any updates or further disclosures from Fino Payments Bank Limited.

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.