BackFino Payments Bank net profit jumps 74% in second quarter
Fino Payments Bank Q2 results: Revenue of the bank grew by 35% year-on-year to ₹242 crore for the quarter under review
PremiumFino Payments Bank on Saturday reported a 74% jump in its net profit to ₹7.89 crore for the quarter ended in September 2021. The bank had posted a net profit of ₹4.52 crore in the year ago same period.
Shares of Fino Payments Bank made its stock market debut on Friday, 12 November, by listing at a discount of over 5% at ₹544 per share on the NSE as compared to its IPO issue price of ₹577 apiece. On the BSE, Fino Payments Bank share price started trading at ₹548 per share on its listing.
The IPO of Fino Payments Bank was subscribed 2.03 times that opened on October 29 and closed on November 1. The ₹1,200.3-crore issue received bids for 2,32,46,150 shares against 1,14,64,664 shares on offer.
Revenue of the bank grew by 35% year-on-year to ₹242.15 crore on the back of a growth of 32% in transaction revenue, 43% in subscription income and 35% in open banking.
Current account and savings account (CASA) subscription revenue grew by 78.3% year-on-year while subscription yield increased from ₹402 per account in Q2FY21 to ₹481 per account in Q2FY22.
"Our growth momentum in transaction volumes and throughput continues to be strong. Consumer behaviour towards convenience banking is gaining impetus," Rishi Gupta, CEO and Managing Director said.
Ketan Merchant, Chief Financial Officer said the bank's investment in technology and operating leverage is beginning to yield results.
"Alongside growth in our existing businesses, our digital journey in Fino 2.0 will help us tap a massive potential of cross sell in the near future," Merchant said.
Fino Payments Bank or FPBL is a scheduled commercial bank serving the emerging Indian market with its digital-based financial services. The company is a fully-owned subsidiary of Fino Paytech, a pioneer in technology-enabled financial inclusion solutions. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).
Fino Payments Bank has built a pan-India presence with 724,671 merchants (own and API) as of June 30, 2021 which are typically located in Tier-2 and Tier-3 towns.
On Friday, Fino Payments Bank shares were down 5.74% to close at ₹543 on NSE.
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