Mumbai, 29 January 2022: The Board of Directors of Fino Payments Bank Limited (BSE: 543386; NSE: FINOPB) (“Fino Bank” or “the Bank”) at its meeting on Thursday, January 27, 2022, approved the financial statements accounts of the Bank for the quarter ended December 31, 2021.
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Performance highlights for the quarter ended December 31, 2021
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Rishi Gupta, CEO & Managing Director said, “It is another standout quarter for us with emerging businesses like liabilities accounts and CMS achieving record volumes. The third quarter is traditionally marked by festivities in India that leads to a surge in payment businesses like those of Fino Bank. Our consistent focus and execution excellence resulted in capitalising on the festive spirit in Q3FY22. Our sequential revenue growth in Q3FY22 is 13.6% over Q2FY22 while the year-on-year growth is at 20%.
Our continuous efforts towards customer-centric innovation and digitization have led to rising in UPI transactions and debit card spending of Fino Bank customers. This further validates the increased adoption of digital payments by our consumers in emerging Bharat. Going forward, we expect revenues from digital banking business to contribute a larger share in our overall revenue pie.”
Ketan Merchant, Chief Financial Officer said, “Operating leverage in our lean cost model is showing impact in our profitability. Our strategy to focus on growth in high margin products not only ensured robust revenues but also a resounding growth in our PAT to ₹14.1 crores in Q3FY22. In the process helped improve our PAT margin by 186 basis points sequentially from 3.26% in Q2FY22 to 5.12% in Q3FY22.
Our annualised ROE in Q3FY22 is at 18% after factoring in the IPO proceeds that came in November 2021. If we exclude the IPO proceeds from our net worth, our average annualized ROE in Q3FY22 would be 33.5%. No credit risk and a risk-free prepaid model representing limited downsides enable a sustainable high ROE trajectory in the long run.”
Some important milestones of Fino Bank in Q3FY22:
- Remittance or Domestic Money Transfer (DMT) business regained pre-COVID levels in terms of throughput in Oct-21
- CMS throughput value for a month crossed ₹2,000 crores in Dec-21 and ₹6,000 crores in a quarter for the first time.
- Opened more than 2 lakh bank accounts in a month for the first time in Dec-21. This is an outcome of converting organic footfalls generated by legacy businesses like DMT and Micro ATM & AEPS
- UPI throughput value crossed ₹5,000 crores for the first time in a quarter
- Received the RBI approval to commence cross-border remittance through the MTSS scheme
