SUMMARY
- Fino Payments Bank reported a net profit of Rs 21.15 crore in Q2 FY25.
- The total revenue rose by 27% to Rs 455.41 crore.
- The company allocated Rs 4.91 crore to its employee expenses in the quarter.
Mumbai-based Fino Payments Bank reported a net profit of Rs 21.15 crore in Q2 FY25, marking an increase of over 8% from the profit of Rs 19.52 crore in the same quarter last fiscal.
However, the company’s profit decreased by 12% compared to the preceding quarter’s profit of Rs 24.27 crore. This achievement is the 19th consecutive quarter of profitability for the firm, which became profitable in Q4 FY20.
“I am delighted to announce that we have posted our highest-ever quarterly revenue and profit before tax (PBT), a testament to our TAM (Transaction, Acquisition and Monetisation) strategy and sustainable business model,” MD and CEO Rishi Gupta shared.
The quarter under review saw a significant surge in total revenue, rising by 27% to Rs 455.41 crore from Rs 358.58 crore in Q2 FY24. On a QoQ basis, the increase was 4% from Rs 436.86 crore.
The primary source of Fino’s revenue was its Current Account Savings Account (CASA), which generated Rs 106.7 crore in the quarter. Additionally, its BC banking service, enabling users to make instant domestic fund transfers, contributed Rs 100 crore. Fino earned Rs 51.2 crore, or 12% of its total revenue, from its remittance services.
The bank announced that it expanded its customer base to nearly 1.3 crore, with 70% of these customers being active. During the quarter, Fino onboarded 8.2 lakh new customers for its banking services. In the quarter under review, the bank facilitated transactions worth Rs 1.06 lakh crore.
Moreover, Fino reported a 22% increase in its merchant network from the previous year, reaching 18.5 lakh. Among these, 6.26 lakh merchants have registered with Fino, with a significant presence in eastern India and the northern regions. Uttar Pradesh is home to Fino’s most active user base.
On the digital front, Fino highlighted that its digital payment services accounted for 17% of its total revenue for the quarter. The quarter saw Fino generate Rs 79.3 crore from its digital offerings, a 10 times increase from the Rs 7.7 crore it recorded in Q1 FY25.
Gupta stated, “Our emphasis on ‘digital payment services’ is giving the necessary impetus to our growth, thereby contributing to the overall journey of ‘Digital as well as Vikasit Bharat.”
The bank also noted that it has over 5 lakh monthly active users on its digital platform, offering a range of 60 services including payments, accounts, and debit cards. In September, Fino captured a 1.55% market share in the competitive UPI digital payments ecosystem.
Fino’s total expenses for the quarter increased by 27% to Rs 429.48 crore from the previous year’s same quarter. While it spent Rs 354.72 crore on other operational expenses, it managed to slightly reduce its employee costs on a sequential basis.
The company allocated Rs 4.91 crore to its employee expenses in the quarter, which is slightly lower than the Rs 4.97 crore spent in the quarter before.
At the end of today’s trading session, Fino’s shares rose by 1.46% to Rs 391.85 on the BSE.
