Fino Payments Bank Ltd, a private sector payments bank, has recorded its highest-ever quarterly renewal income of ₹62 crore in the March quarter. Deposits also peaked to an all-time high of ₹2,950 crore in the same period, as per provisional and unaudited results for Q4FY26.
The bank opened seven lakh new bank accounts during the quarter, taking its total customer base to 1.75 crore.
Credit momentum builds ahead of SFB transition
Disbursements grew 96% over Q3, reaching ₹600 crore through partner institutions, reflecting strong credit momentum within the bank’s ecosystem. The growth lays the foundation for the bank’s small finance bank (SFB) journey ahead.
The surge highlights the growing credit potential within Fino’s distribution network, a key lever as it prepares to transition into a more full-service lending institution.
Transaction business feels the pinch
The transaction business, comprising remittance, micro ATM and Aadhar enabled payment system, declined 30% against Q3 due to muted activity in January and February, though it recovered in March.
Digital payment systems saw a 25% moderation, in line with the bank’s continuous risk-calibrated approach and the impact of recent industry developments.
Merchant base quality takes centre stage
The bank’s focus remains on building a high-quality, active, and risk-mitigated merchant base. Stabilisation initiatives are currently underway, with recovery expected over the coming quarters.
While select segments reflect ongoing industry transitions, the bank remains focused on strengthening core liabilities, improving business quality, and building scalable growth drivers aligned with its strategic roadmap.
The road ahead: liability-first and prudent lending
Fino will continue to progress on its small finance bank implementation journey, anchoring its strategy around a strong liability-first approach. A prudent secured lending franchise with a differentiated distribution strategy forms the core of its long-term roadmap.
The dual focus on deposit mobilisation and credit quality signals a deliberate shift, from a transaction-heavy model to one built for sustainable, regulated banking growth.