Fino Payments Bank reported a net loss of Rs 13.7 crore for the first quarter of this fiscal, compared with a net profit of Rs 17.8 crore in the year-ago period, as the bank recalibrated its digital payments services and saw pressure on its transaction-led business.
Net interest income (NII) rose 13.1% year-on-year to Rs 36.9 crore in the quarter under review from Rs 32.6 crore a year earlier. However, the decline in revenue and profitability was primarily attributed to the recalibration of its Digital Payments Services, particularly the B2B UPI P2M vertical, as well as the cash-driven transaction business.
The bank said its net revenue margin expanded by 925 basis points year-on-year and 275 basis points sequentially to 42.8% in quarter ended June. This was supported by a higher contribution from the high-margin CASA segment, which accounted for 54% of the mix.
Ebitda margin remained broadly stable at 14% compared with 13.6% in quarter ended June, although it declined from 16.5% in the preceding quarter.
Fino Payments Bank’s total throughput declined 10% year-on-year but increased 3% sequentially to Rs 1.11 lakh crore during the quarter. UPI throughput, however, continued to grow, rising 14% year-on-year and 2% sequentially to Rs 60,100 crore as digital engagement among customers increased.
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The bank said Digital Payments Services remained non-operational during the quarter under review as part of its strategic recalibration, with a relaunch expected in the fourth quarter of the last fiscal. The impact of UPI was also visible in the bank’s transaction business, which includes remittance, MATM and AePS. Revenue from the segment declined 50% year-on-year, while throughput fell 44%.
Fino continued to strengthen its liability franchise during the quarter. Its CASA customer base increased 22% year-on-year to 1.83 crore, with 8.4 lakh new CASA accounts opened during quarter ended June. Average total deposits rose 12% year-on-year to Rs 2,772 crore.
Renewal income also remained resilient, increasing 7% year-on-year to Rs 67.5 crore, reflecting continued customer engagement, the bank said. The CMS segment showed signs of recovery, with throughput rising 26% sequentially to Rs 18,092 crore. However, Fino noted that competition from banks and fintech companies continues to put pressure on pricing in the segment.
Fino’s loan referral business, which serves as a pilot for its proposed small finance bank, recorded a sharp increase in disbursals. Disbursals surged 214% year-on-year to Rs 628 crore in quarter ended June, accounting for nearly half of the total disbursals recorded in fiscal 2026.
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