Fino PayTech CEO Rishi Gupta says the firm has one more stake sale, after which it will proceed ahead to launching the payments bank
Mumbai: Having bagged a ₹ 250 crore investment from BPCL, the first by an oil marketer in a payments bank, Fino PayTech Ltd is looking for at least one more round of fund infusion through stake sale before it launches the bank in about six months.
“We will have at least one more stake sale, after which we will proceed ahead to launching the bank," Fino managing director and CEO Rishi Gupta told PTI.
He declined to elaborate the quantum of infusion or the stake sale in the company, valued at over ₹ 1,200 crore, is looking at. When asked about the new shareholders, Gupta hinted that they may be some new, non-financial player again, saying a payments bank is the start of differentiated banking and the stakeholders will also be from varied businesses.
It can be noted that till now, a majority of the eight payments bank aspirants are riding on complementarity with the telecom business and it is the first time that an oil marketing company has come on board.
Some such as Bharti Airtel Ltd’s tie-up with Kotak Mahindra Bank Ltd has already received the final nod while others are on the way. The Reserve Bank of India’s (RBI) 18-month window to those who have been given in-principle nod is on till February 2017.
Gupta said Fino is waiting for the stake sale to go through before making proceeding ahead for the final nod. It can be noted that under the RBI norms, Fino is required to bring its foreign holding under 50% which is being done through the stake sale.
Fino’s shareholders include ICICI Bank, IFC, HAV3 holdings, Blackstone Group and Intel Capital, besides BPCL.
Gupta said Fino will be targeting the “non-digital" population for the payments bank operations. Apart from BPCL’s network of retail outlets which serve a slew of individual customers and fleet operators, the payments bank will also benefit from its home gas distribution business where the subsidies are transferred directly into bank accounts, Gupta said.
Fino’s bank will be competing with big players including Aditya Birla Group, Reliance Industries Ltd, department of posts, PayTM and Vodafone, among others, in the payments bank space.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!