 "Fino Payments Bank Q4 results: Net profit rises 14% to Rs 25.21 crore")
Fino Payments Bank reported a net profit of Rs 25.21 crore in the fourth quarter of the financial year 2024 (Q4 FY24), a 14.2 per cent increase on a year-on-year (YoY) basis, from Rs 22.08 crore during the corresponding time last year (Q4 FY23).
On a sequential basis, the company’s net profit rose 10 per cent from Rs 22.80 crore in Q3 FY24.
The Mumbai-based payments bank’s revenue surged 24 per cent to Rs 401.3 crore in Q4 FY24 from Rs 323.43 crore in Q4 FY23. Sequentially, the firm’s revenue increased 8.4 per cent from Rs 370.2 crore in Q3 FY24.
The company saw an uptick in its expenditure during the final quarter of the last financial year. Expenses for the firm rose 24.8 per cent on a YoY basis to Rs 376.01 crore in Q4 FY24 from Rs 301.35 crore in Q4 FY23. On a quarter-on-quarter basis, its expenses increased 8.2 per cent from Rs 347.4 crore.
“The two things that work for us are the annuity income from current account-savings account (CASA) and cash management. The annuity income is where we run a subscription model for CASA, and that has grown 75 per cent. Second, is where the transaction value has increased in cash management, which has grown 42 per cent on a YoY basis,” said Ketan Merchant, chief financial officer (CFO), Fino Payments Bank.
He added that the company follows a TAM model which indicates a mix of strategy involving transaction, acquisition, and monetisation of customers.
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Meanwhile, the payments bank has applied for a licence to become a small finance bank (SFB) in January this year.
Last week, the Reserve Bank of India (RBI) came out for the voluntary conversion of SFBs into universal banks.
While Merchant did not comment on the roadmap to further become a universal bank, he explained that an SFB will become an additional product for the firm in terms of being able to lend.
“I cannot comment on the roadmap to be a universal bank. We will continue to grow our payments services and when an SFB licence comes, it becomes an additional product in terms of lending. We have applied for the licence and how it progresses is up to the regulator,” he added.