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Fino Payments Bank says inclusion in commercial bank list to boost biz

Fino Payments Bank on Wednesday said it will be able to improve its business prospects further as the RBI has included it in the category of a scheduled commercial bank

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Fino Payments Bank | Indian Banks

Press Trust of India  |  New Delhi 

Fino Payments Bank says inclusion in commercial bank list to boost biz

on Wednesday said it will be able to improve its business prospects further as the RBI has included it in the category of a scheduled commercial bank.

The Reserve Bank on Tuesday said it has included in the Second Schedule of the Act, 1934.

The scheduled commercial bank, also called scheduled bank, status allows Fino to enhance its banking position in the treasury and participation in liquidity adjustment facility (LAF) window as per the RBI. It also helps the bank strengthen its business proposition on liabilities generation, Fino said in a release.

"It provides strategic impetus for to enhance its scope on balance sheet management and explore additional avenues for business. We are keen to capitalise on the growth opportunities that exist within the regulatory guidelines and build on the momentum of consistent profitability achieved last fiscal," said Rishi Gupta, MD & CEO, Fino Payments Bank.

The lender said as a scheduled commercial bank, Fino will be better positioned to explore and manage government businesses.

Mandates pertaining to pensions, provident funds and various welfare schemes under direct benefit transfer (DBT) will help enhance Fino's foot print in the financial inclusion space.

Also, increased visibility on the government websites strengthens the customers' bond with the bank.

During the lockdown in mid-2020, Fino's micro ATM and Aadhaar Enabled Payment System (AePS) enabled merchant network to play a critical role in making banking facilities available to DBT beneficiaries in tier 4, 5 and 6 locations, said the lender.

Fino began its operations in 2017 and achieved profitability in 2019-20.

Since then for the past four continuous quarters, the bank's tech-enabled network model has been driving sustained quarter-on-quarter profit after tax growth in excess of 43 per cent, it said.

"Scalability and asset light nature of the business is resulting in business growth and profitability. With around 70 per cent of its phygital network present in rural/semi urban areas, Fino's last mile reach facilitates ease of access, convenience and neighbourhood banking services to millions of its own as well as other bank customers," the bank said.

Fino said its asset light distribution network has over 5.5 lakh own and partner points as of now.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, February 24 2021. 21:09 IST
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