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Fino Payments Bank to apply for small finance bank license
July 31, 2023
Fino Payments Bank Ltd. on Friday said that its board has approved a proposal to transition into a small finance bank.
With this, Fino has become the first such entity to move towards becoming a small finance bank (SFB) since the Reserve Bank of India in 2019 allowed payments banks to apply for conversion into SFB after five years of operations.
As a small finance bank, Fino will be able to finally lend to its customers from its own book.
Fino Payments Bank, which started operations in 2017, is currently the highest profit-generating payments bank. In the June quarter of FY24, the payments bank registered a net profit of ₹18.7 crore, up 85% year-on-year. However, profit declined 15% sequentially.
The Mumbai-based bank said its revenue increased 21% year-on-year to ₹348 crore. It facilitated transactions worth ₹75,000 crore, of which more than ₹18,000 crore were processed by its digital network alone.
As of 30 June, the bank’s total current and savings accounts (CASA) stood at 82.9 lakh worth ₹1,221 crore deposits. Initially, payment banks were allowed to accept deposits of up to ₹1 lakh per customer, but the limit has been now raised to ₹2 lakh.
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