Company Overview
Fino Payments Bank Limited reported its FY2025-26 financial results and announced its 10th Annual General Meeting scheduled for September 29, 2026. The bank demonstrated mixed performance with strategic shifts impacting financial metrics.
Financial Performance
FY26 results showed total revenue of ₹1,587.9 crore and net profit of ₹52.5 crore, representing a 43% decline from ₹92.5 crore in FY25. Despite the profit decline, the bank achieved strong deposit growth with average total deposits increasing 28% YoY to ₹2,576 crore. Total assets stood at ₹5,311.90 crore, while borrowings increased to ₹1,535.30 crore. The capital adequacy ratio remained robust at 83.95% with Tier I capital of 75.04%.
Strategic Developments
The bank received in-principle approval from RBI on December 5, 2025 for conversion from Payments Bank to Small Finance Bank, marking a significant milestone. Technology transformation was completed with the migration to Finacle core banking platform in January 2026, enhancing scalability and operational efficiency.
Regulatory Challenges
Fino faced multiple regulatory issues including a ₹29.60 lakh penalty from RBI for non-compliance with licensing directions, and a ₹5.89 lakh settlement with SEBI for disclosure violations. A GST investigation led to the arrest of former MD & CEO Rishi Gupta in February 2026, though he was granted bail in March 2026. The investigation pertained to alleged GST non-payment by third-party program managers connected to the bank's UPI P2M business.
Management Changes
Mr. Rishi Gupta resigned as MD & CEO effective May 21, 2026 following the regulatory issues. Mr. Ketan Merchant was appointed as Interim CEO from February 27, 2026, and Mr. Anup Agarwal as Interim CFO from March 6, 2026, both approved by RBI.
Operational Metrics
The bank maintained 1.75 crore CASA customers (22% YoY growth) and 20.8 lakh merchant network (10% growth). Total transactions reached 389.3 crore with digital throughput of ₹2,62,009 crore (56% of total). Referral loan disbursals grew 3.5x to ₹1,285 crore, indicating successful diversification into higher-margin products.
ESG and Corporate Responsibility
Comprehensive ESG disclosures covered training, human rights, and environmental management. CSR spending of ₹1.73 crore benefited 15,568 individuals. The bank maintained 2,848 permanent employees with 100% coverage for health insurance and retirement benefits.
Forward Outlook
Priorities for FY27 include expanding deposits and CASA balances, increasing digital customer engagement, growing annuity-based revenue streams, and completing key milestones for SFB operationalization following RBI's in-principle approval.