SUMMARY
Shares of Fino Payments Bank jumped over 5% to INR 303 apiece on the BSE in early trade after the company reported robust growth in its business in Q3 FY25
The bank’s total income jumped 24.6% to INR 461.34 Cr in the reported quarter from INR 370.20 Cr in the December quarter last year
Net profit rose 9% on a quarter-on-quarter basis from INR 21.15 Cr
Shares of Fino Payments Bank jumped over 5% to INR 303 apiece on the BSE in early trade today (January 30) after the company reported robust growth in its business in the third quarter of the fiscal year 2024-25 (Q3 FY25).
However, the stock gave up all of the gains later and was quoting INR 287.95 on the BSE at 1:04 PM, down 0.03% from the previous close.
Shares of Fino Bank have shed 3% over the last five trading sessions and almost 9% in the past month.
The intraday upward swing in the stock came a day after Fino disclosed its December quarter earnings. The bank’s total income jumped 24.6% to INR 461.34 Cr in the reported quarter from INR 370.20 Cr in the December quarter last year. On a quarter-on-quarter basis, total income shot up 13.2% from INR 407.66 Cr.
The biggest contributor to Fino Bank’s revenue during the quarter under review was CASA (Current Account Savings Account), which brought in INR 111.6 Cr with a margin of 50%. Meanwhile, the bank’s digital payment services arm, its UPI payments stack, surged 4X to INR 109.7 Cr in Q3 FY25.
EBITDA soared 19% year-on-year to INR 60.2 Cr in the quarter ended December 31, 2024.
Fino’s net profit was almost flat at INR 23.11 Cr in Q3 FY25, compared to INR 22.80 Cr in the year-ago quarter, primarily due to a tax outgo of INR 5.34 Cr.
However, profit rose 9% on a sequential basis from INR 21.15 Cr in the September quarter.
The rise in expenses, however, outpaced the growth in revenue with total expenditure surging 25% YoY to INR 432.89 Cr in Q3 FY25.
Founded in 2017, Fino Payments Bank operates on an asset-light business model that principally relies on fee and commission-based income generated from merchant networks and strategic commercial partnerships.
It also referral loans through partnerships that validate the creditworthiness of customers. The bank has also applied for a small finance bank licence with the Reserve Bank of India.
Earlier this month, reports surfaced that some employees of Fino allegedly floated fictitious schemes to defraud customers and merchants to the tune of INR 35.5 Cr.
Source: www.inc42.com
