Fino Payments Bank experienced a mixed performance in August, with new account openings declining 22% year-on-year to 2.43 lakh accounts from 3.14 lakh accounts in August 2025, according to the bank's latest business update. The bank's renewal income also slipped 4% year-on-year to ₹22.8 crore, while transaction throughput fell 19% year-on-year to ₹3,770 crore from ₹4,660 crore. These declines reflect ongoing challenges in the bank's transaction-led business as it continues to recalibrate its digital payments services, particularly its B2B UPI P2M vertical.
Despite challenges in core business segments, Fino Payments Bank demonstrated strong performance in loan referrals, with loan referral disbursals surging to ₹243 crore in August from ₹52 crore a year ago, representing a jump of 367%. The bank's cash management services throughput also grew 17% to ₹6,669 crore, indicating healthy momentum in other business areas. Fino's digitally active customer base increased 15% year-on-year to 65.6 lakh, while FinoPay active customers rose 13% to 8.1 lakh, showing continued growth in digital engagement.
The bank maintained steady growth in deposits during August, with average total deposits rising 12% year-on-year to ₹2,821 crore from ₹2,509 crore a year ago, as reported by the bank. Net interest income rose 13.1% year-on-year to ₹36.9 crore, while the bank's net revenue margin expanded 925 basis points year-on-year and 275 basis points sequentially to 42.8%. The higher contribution from the high-margin CASA segment, which accounted for 54% of the mix, contributed to the improved revenue margins.
The August performance follows a mixed first quarter for Fino Payments Bank, where the bank reported a net loss of ₹13.7 crore in Q1FY27 compared with a net profit of ₹17.8 crore in the year-ago quarter, as reported by CNBC TV18. The bank faced pressure in its transaction-led business and continued recalibration of digital payments services during this period. Despite the quarterly loss, the bank maintained positive momentum in key financial metrics including deposit growth and loan referral performance.
Shares of Fino Payments Bank were trading 1.6% higher at ₹140 on the BSE after the announcement, according to CNBC TV18, reflecting a relatively modest market reaction to the mixed business update. The bank stated that sustained deposit growth and healthy momentum in loan referrals continue to reinforce its preparedness for its proposed transition to a Small Finance Bank. The mixed performance across different business segments highlights the ongoing challenges and opportunities in the bank's strategic transformation efforts.
