Fino Payments Bank eyes 30-35 pc revenue growth over long term: MD Rishi Gupta

The recently listed Fino Payments Bank has witnessed good growth across key parameters during the first half of the current fiscal year and is expecting to grow at about 30-35 percent in terms of revenue on a long-term basis, its Managing Director and CEO Rishi Gupta said.

Fino Payments Bank has been a profit-making company since the last quarter of FY20, and the bulk of its revenue comes from transaction fees. It was listed on the stock exchanges with its IPO in November this year.

"We have been a profitable company, we have shown good growth. In the first half of this year, our transaction value went up by 51 percent, our revenue went up by 36 percent and our profit went up by 73 percent," he said.

"Our business is growing, fundamentally nothing has changed for us since the time we went public. Sustainability with a good growth of 30-35 percent both on revenue growth and growth on operating leverage is also there. We will continue to see growth in our profit," Gupta said, who is also the Founder of Fino Payments Bank.

He believes the bank is in a sweet spot amongst its peers, especially the listed, ones because the bank is the only profitable company in this space and its business is also growing.

Gupta said Fino is a very differentiated payments bank compared to other fintech players in the market.

"Our target segment is very different, we are looking at people who are in the middle and lower income segment. We are serving not necessarily in digital mode but physical as well. As a bank, 97 percent of our income comes from transaction fees and there is no credit risk as such that our portfolio can go bad," he said further.

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Going forward, the payments bank is set to launch a number of new products for its customers such as international remittances services as well as mutual funds, besides a few other consumer and business products.

For both these products, Fino is awaiting regulatory approval, the official said.

Fino Payments Bank is a fully owned subsidiary of Fino Paytech Limited (FPL). FPL is backed by marquee investors like Blackstone, ICICI Group, Bharat Petroleum, and IFC, amongst others.

Over the last few years, the bank has witnessed a steep surge in transaction volumes on the back of digitisation and the proliferation of its banking points.

In FY'21 the payment bank's platform facilitated more than 43.4 crore transactions having a gross transaction value of Rs 1.32 lakh crore.

Fino Payments Bank had the largest network of micro ATMs as of March 2021 with a market share of 55 percent, a merchant network of 6.4 lakh, and 25.7 lakh bank accounts.