Fino Payments Bank hits operational profitability, revenue grows by 86 pc

Mumbai-based Fino Payments Bank Limited (FPBL) on Wednesday announced that it turned profitable at the operating level for the financial year 2019-20. FPB said it achieved this milestone within three years of the bank starting operations in July 2017. 

The bank reported net revenue of Rs 689 crore, up by 86 percent from Rs 370 crore in FY 2019. This makes FPB the only standalone profitable payments bank that works solely on RBI’s financial inclusion objective by improving banking access predominantly in rural India, it added in a release.

Transactions have been the driving force behind Fino Payments Bank’s operating profit journey, the release said. In FY 19-20, FPB claims to have facilitated over Rs 1 lakh crore worth of transactions, doubling on the previous fiscal’s throughput. In terms of volume, transactions have almost doubled from 195 million in FY 18-19 to over 380 million in FY19-20, FPB stated.

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Rishi Gupta, MD and CEO, Fino Payments Bank said,

“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.”

The payments bank domestic remittance (urban to rural) transactions accounted for over 40 percent of the FY19-20 throughput, making the bank a top five player in the IMPS business. Micro ATM and AePS led digital transactions contributed to over 30 percent to the business. The bank’s CASA customer base increased by over 65 percent in FY19-20. 

The bank doubled its network from less than a lakh in FY18-19 to close to two lakh points by the end of FY19-20, with around 80 percent presence in rural areas. 

The bank also works with more than 50 API partners that have a collective network of two lakh points. To further improve banking access, FPB plans to increase the network to 10 lakh outlets over the next 24-30 months.