Fino Bank

Fino Payments Bank Limited (FPBL) announced that it became profitable at the operating level for the fiscal year 19-20. This is a big achievement for the company as they could become profitable within 3 years of its inception. They reported a surge of 86% in their revenue, up by Rs 370 crore in FY 2019 to Rs 689 crore this year.

The company released a statement saying that this milestone makes FPB the only standalone profitable payments bank that functions solely on RBI’s financial inclusion objective by enhancing banking access mainly in Rural India.

Transactions have played a big role in the bank’s profitability as in FY 19-20, Fino Payments Bank facilitated 1lakh crore worth of transactions which is twice the last year’s capacity. If volume is taken into consideration, the transactions have almost doubled from 195 million in 2018-19 to over 380 million in Financial year 19-20.

“Our strategic focus on having a lean variable cost model riding on digital platforms, increasing transactions and high margin products enabled us to grow by over 86 percent in FY19-20.  With revenue of Rs 689 crore, we closed FY 19-20 with positive EBITDA and posted profit in Q4.”

Said MD and CEO of FPB, Rishi Gupta.

The bank recorded domestic remittance transaction for over 40% which brings in top 5 players of Immediate Payment Service (IMPS) business while Micro ATM and AePS led digital payments make up for 30% of the business. Its CASA customer base too increased by over 65% in FY19-20.

Financial Year 19-20 also witnessed a two-fold increase in its network as it reached almost 2 lakh points, out of which 80% is from rural areas. They also plan to grow their network to 10 lakh outlets in next 2-2.5 years.


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