PAT, Mumbai, 27 January 2022: The Board of Directors of Fino Payments Bank Limited (BSE: 543386; NSE: FINOPB) (“Fino Bank” or “the Bank”) at its meeting on Thursday, January 27, 2022, approved the financial statements accounts of the Bank for the quarter ended December 31, 2021.
Rishi Gupta, CEO & Managing Director said, “It is another standout quarter for us with emerging businesses like liabilities accounts and CMS achieving record volumes. The third quarter is traditionally marked by festivities in India that leads to a surge in payment businesses like those of Fino Bank. Our consistent focus and execution excellence resulted in capitalising the festive spirit in Q3FY22. Our sequential revenue growth in Q3FY22 is 13.6% over Q2FY22 while the year-on-year growth is at 20%.
PAT’s continuous efforts towards customer centric innovation and digitization have led to rise in UPI transactions and debit card spends of Fino Bank customers. This further validates the increased adoption of digital payments by PAT’s consumers in emerging Bharat. Going forward, we expect revenues from digital banking business to contribute a larger share in our overall revenue pie.”
Ketan Merchant, Chief Financial Officer said, “Operating leverage in our lean cost model is showing impact in our profitability. Our strategy to focus on growth in high margin products not only ensured robust revenues but also a resounding growth in our PAT to ₹14.1 crore in Q3FY22. In the process helping improve our PAT margin by 186 basis points sequentially from 3.26% in Q2FY22 to 5.12% in Q3FY22.
PAT’s annualised ROE in Q3FY22 is at 18% after factoring in the IPO proceeds that came in November 2021. If we exclude the IPO proceeds from our net worth, our average annualized ROE in Q3FY22 would be 33.5%. No credit risk and a risk-free prepaid model representing limited downsides enable a sustainable high ROE trajectory in the long run.”
Some important milestones of Fino Bank in Q3FY22:
- Remittance or Domestic Money Transfer (DMT) business regained pre-COVID levels in terms of throughput in Oct-21
- CMS throughput value for a month crossed ₹2,000 crores in Dec-21 and ₹6,000 crores in a quarter for the first time.
- Opened more than 2 lakh bank accounts in a month for the first time in Dec-21. This is an outcome of converting organic footfalls generated by legacy businesses like DMT and Micro ATM & AEPS
- UPI throughput value crossed ₹5,000 crores for the first time in a quarter
- Received the RBI approval to commence cross-border remittance through MTSS scheme
About Fino Payments Bank Ltd
Fino Payments Bank is a fully owned subsidiary of Fino Paytech which had last raised funds in 2016. Fino Paytech is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. Frugal innovation is the key that has given the fintech a leadership position at the middle of the pyramid which primarily constitutes emerging India customers. The Mumbai-based fintech operates on an asset light business model that principally relies on fee and commission based income generated from merchant network and strategic commercial relationships.
The fintech bank turned profitable in the fourth quarter of FY20 and has been profitable in subsequent quarterly periods. The bank registered first full year profit of ₹20.5 crore in FY21. In 9MFY22 the Bank registered a Profit After Tax (PAT) of Rs 25.12 crores, a 95% increase on 9MFY21 profit.
By the end of December 2021, the transactions-led fintech had a customer base of over 3.9 million and a neighbourhood merchant network of more than 0.86 million points.
This article was shared with Prittle Prattle News as a Press Release by PRNewswire
