Fino Payments Bank April Update: Deposits Cross ₹2,800 Crore, Loan Referral Business Triples

Why It Matters

The mixed results highlight Fino’s growing deposit franchise and loan‑referral momentum but underscore profitability challenges as the business pivots toward digital payments and higher‑margin CASA assets. Investors will watch whether the shift to UPI and a stronger CASA mix can translate into sustainable margin improvement in FY27.

Key Takeaways

• Deposits rose 13% YoY to ₹2,801 cr (~$338 M).
• Loan referrals surged to ₹166 cr (~$20 M), tripling year‑over‑year.
• Transaction throughput fell 47% to ₹2,649 cr (~$319 M).
• B2B UPI merchant volume plunged 96% to ₹101 cr (~$12 M).
• PAT slumped 70% YoY to ₹7.1 cr (~$0.86 M).

Pulse Analysis

Fino Payments Bank’s April performance underscores a classic fintech‑to‑bank transition. While its deposit base expanded by 13% to roughly $338 million, the surge in loan‑referral disbursements—up three‑fold to $20 million—signals that the bank’s partner ecosystem is gaining traction. This growth is being driven by a steady inflow of new accounts and a 9% rise in renewal income, suggesting that customers are staying engaged despite a broader market shift toward instant payment platforms.

The downside of this digital pivot is evident in the 47% drop in overall transaction throughput, now at $319 million, and a dramatic 96% plunge in B2B UPI person‑to‑merchant volume to $12 million. Fino’s deliberate slowdown of low‑margin merchant transactions reflects a strategic choice to prioritize higher‑quality, lower‑risk partners. However, the sharp 70% decline in profit after tax to under $1 million raises concerns about cost structures and the timing of margin improvements as the bank leans more heavily on its CASA (current account‑savings account) mix.

Looking ahead, analysts will focus on whether Fino can convert its expanding deposit franchise and loan‑referral pipeline into sustainable earnings. The bank’s management projects better margins in FY27, banking on a larger CASA contribution and a more calibrated UPI strategy. Market sentiment remains cautious; the stock is still 71% below its 2024 peak, reflecting investor wariness about the path to profitability. Success will hinge on balancing rapid digital adoption with disciplined risk management and cost efficiency.