Fino Payments Bank Submits Application To RBI For Small Finance Bank License
Fino Payments Bank has submitted an application for a Small Finance Bank (SFB) license to the Reserve Bank of India (RBI), as per the RBI's statement on 8 January, confirming the receipt of one application under the Guidelines for 'on tap' Licensing of Small Finance Banks in the Private Sector.
The decision for transition into an SFB was approved by the bank's board on 28 July. Additionally, the bank has established a committee to assess the potential implications and other aspects of group corporate restructuring.
Highlighting its focus on customer acquisition and sustainable growth, the bank had previously indicated an 85 per cent year-on-year (YOY) increase in profit, underlining its progressive strengthening and its capacity to utilise its extensive network.
In the second quarter of the financial year 2023-24 (FY24), Fino Payments Bank witnessed a consolidated Profit After Tax (PAT) surge of 41.5 per cent YOY, reaching Rs 19.5 crore, driven by robust transactional growth and an expanding user base. This marked a significant increase from the previous year's PAT of Rs 13.8 crore.
The bank's revenues grew by 18.2 per cent to Rs 358.6 crore compared to Rs 303.3 crore in Q2 FY23. Concurrently, the total expenditure, excluding provisions and contingencies, rose by 16.9 per cent to Rs 338.50 crore from Rs 289.5 crore in the corresponding period last year.
