Fino Payments Bank net profit rises 116% at Rs 14.1 crore in Dec quarter

Fino Payments Bank (Fino Bank) posted 116 per cent year-on-year (YoY) rise in net profit at Rs 14.1 crore in the third quarter ended December 2021 (Q3Fy22).

Its revenues rose by 20 per cent YoY to Rs 275.16 crore in Q3Fy22. The YOY revenue growth in Fy22 is expected to be in the range of 27-29 per cent over FY21 despite headwinds posed by wave 2 & 3 of Covid, Bank said in an analyst presentation.

Its stock closed 0.6 per cent higher at Rs 392.70 per share on BSE.

Overall throughput value (TPV) grew by 29 per cent YOY to Rs 49,168 crores in Q3FY22, the bank said in a statement. Payments Banks can take deposits but are not allowed to do lending. They can provide services specially to improve access to financial services to those at the bottom of the pyramid and small businesses.

Rishi Gupta, CEO & Managing Director said, emerging businesses like liabilities accounts and CMS achieving record volumes gave support to activities. The third quarter is marked by festivities in India, leading to a surge in payment businesses like those of Fino Bank. The revenues grew 20 per cent YoY and sequentially 13.6 percent over Q2Fy22.

The innovation and digitization led to a rise in UPI transactions and debit card spends. Going forward, revenues from digital banking business are expected to contribute a larger share in overall revenue pie, Gupta said.

Ketan Merchant, Chief Financial Officer said, the operating leverage in lean cost model is showing impact in our profitability. The focus on high margin products has ensured robust revenues and growth in net profit.

This helped to improve net profit margin by 186 basis points sequentially from 3.26 per cent in Q2FY22 to 5.12 per cent in Q3FY22. The profit margin for Q4FY22 is expected to be in the range of 5.2-5.5 per cent, it added.