FINOPB - Fino Payments
📢 Recent Corporate Announcements
Fino Payments Bank has achieved a significant milestone with its total deposit balance reaching an all-time high of approximately Rs 2,900 crores as of March 13, 2026. The bank witnessed a rapid 9% growth in deposits over a two-week period, alongside the addition of 1.5 lakh new banking accounts. This surge reflects a high daily average of nearly 10,000 new accounts since late February 2026. The growth is attributed to the bank's new core banking platform and its successful merchant-led phygital model targeting the underserved 'Bharat' segment.
- Total deposit balance reached a record high of ~Rs 2,900 crores as of March 13, 2026.
- Deposits grew by nearly 9% in just two weeks starting from late February 2026.
- Added ~1.5 lakh new banking accounts since February 27, 2026, averaging 10,000 accounts per day.
- Growth supported by the implementation of a new technology-enabled core banking platform.
- Strong traction in the merchant-led phygital model across underserved and rural communities.
Fino Payments Bank has received an unfavorable order from a Bengaluru court regarding its application to lift a lien on ₹11.92 Crores. The lien was originally marked by the CID in March 2025 in connection with an investigation involving a Karnataka Government undertaking and four of the bank's merchants. Although the bank maintains that it and its employees are not involved in the incident, the court has not accepted the application for removal of the lien. The bank has announced its intention to challenge this order by filing an appeal before the High Court of Karnataka.
- Bengaluru Court rejected the bank's application to remove a lien marked on ₹11.92 Crores.
- The lien is related to a CID investigation involving an incident reported by a Karnataka Government undertaking.
- The investigation pertains to the alleged use of services of 4 bank merchants by an accused party.
- The bank intends to file an appeal against the court order in the High Court of Karnataka.
- The bank maintains that neither the institution nor its employees are involved in the reported incident.
ICRA has placed Fino Payments Bank's ratings of [ICRA]BBB+ and [ICRA]A2+ on 'Watch with Developing Implications'. This rating action follows the arrest of the bank's Managing Director & CEO, Mr. Rishi Gupta, which was initially disclosed on February 27, 2026. The watch applies to fund-based overdraft facilities totaling Rs. 294.54 crore. While the ratings remain unchanged for now, the developing implications status reflects uncertainty regarding management stability and potential operational impacts.
- ICRA places [ICRA]BBB+ and [ICRA]A2+ ratings on 'Watch with Developing Implications'
- The rating action affects a total fund-based overdraft limit of Rs. 294.54 crore
- Triggered by the arrest of MD & CEO Mr. Rishi Gupta as reported in late February 2026
- Major bank limits include Rs. 80 crore with ICICI Bank and Rs. 73.44 crore with State Bank of India
- Mr. Ketan Merchant has been identified as the Interim CEO to oversee current operations
Fino Payments Bank has received a formal ESG rating from Crisil ESG Ratings & Analytics Limited. The bank was assigned a score of 'Crisil ESG 54' for Fiscal 2025, based on its annual disclosures and publicly available data. This disclosure follows the updated SEBI guidelines for ESG reporting and provides a benchmark for the bank's sustainability and governance performance. While the score provides transparency, it serves more as a long-term indicator for institutional investors rather than a short-term financial catalyst.
- Assigned a 'Crisil ESG 54' rating by Crisil ESG Ratings & Analytics Limited.
- The rating is based on disclosures and performance data for Fiscal Year 2025.
- Compliance with SEBI Circular dated July 11, 2023, and updated January 30, 2026.
- The rating report was finalized on March 09, 2026.
Fino Payments Bank Limited has received a revised ESG rating from Crisil ESG Ratings & Analytics Limited. The bank has been assigned a score of 'Crisil ESG 54' for the Fiscal Year 2025. This rating is based on the bank's disclosures for the fiscal year and other publicly available information. ESG scores are increasingly relevant for institutional investors who prioritize sustainable and responsible investment frameworks.
- Crisil ESG Ratings & Analytics Limited assigned a rating of 'Crisil ESG 54' to the bank.
- The rating is based on disclosures and data for the Fiscal Year 2025.
- The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- The rating process incorporated both bank-provided disclosures and publicly available data sets.
The Reserve Bank of India (RBI) has approved the appointment of Mr. Ketan Merchant as the Interim CEO of Fino Payments Bank, effective February 27, 2026. This interim arrangement is slated for a duration of three months or until the permanent CEO, Mr. Rishi Gupta, resumes office. The return of the permanent CEO is contingent upon a 'fit and proper' status reassessment by the bank's NRC and Board, followed by RBI's final view. This development indicates a temporary leadership transition while regulatory compliance matters are addressed.
- RBI approved Ketan Merchant as Interim CEO effective from February 27, 2026.
- The interim appointment is valid for a maximum period of three months.
- Regular CEO Rishi Gupta's return is subject to a 'fit and proper' status reassessment.
- The reassessment process involves the NRC, the Board, and subsequent RBI approval.
Fino Payments Bank has announced a leadership transition, appointing current CFO Ketan Merchant as Interim CEO for a period not exceeding 4 months, pending RBI approval. To fill the vacancy, Anup Agarwal, who has 20 years of experience in finance, has been appointed as the Interim CFO effective March 06, 2026. Additionally, the board has authorized the appointment of a special consultant to conduct a review of GST compliances. These interim appointments are intended to maintain leadership continuity while the bank pursues its Fino 2.0 growth strategy.
- Mr. Ketan Merchant, with 27+ years of banking experience, appointed as Interim CEO for up to 4 months.
- Mr. Anup Agarwal, with 20 years of experience, appointed as Interim CFO effective March 06, 2026.
- Board approved a special consultant to conduct a review of GST compliances and other specific aspects.
- Interim CEO appointment is subject to final approval from the Reserve Bank of India (RBI).
Fino Payments Bank has addressed media speculations regarding an investigation by the Director General of GST Intelligence, asserting that it has no association with shell companies and follows strict KYC norms. The bank confirmed that the RBI has granted an 18-month timeline for its conversion into a Small Finance Bank (SFB), a process it expects to complete ahead of schedule. Management maintains that there is no expected financial liability from the ongoing GST matter and that business operations remain unaffected. The bank also denied allegations of issuing fake invoices, stating all transactions are based on actual services.
- RBI has provided an 18-month timeline for the bank's conversion into a Small Finance Bank.
- Bank expects to complete the SFB conversion process before the stipulated 18-month deadline.
- Investigation is currently limited to the Director General of GST Intelligence with no other probes.
- Management denies any association with shell companies or merchants registered outside India.
- No financial liability is foreseen at this point, and business operations continue as usual.
Fino Payments Bank has officially released the audio recording of its group conference call with investors and analysts held on March 02, 2026. This disclosure is a routine regulatory requirement under SEBI Listing Regulations to ensure transparency in management interactions. The call follows a prior notification issued by the bank on February 28, 2026. A written transcript of the proceedings is expected to be filed with the exchanges in the coming days.
- Group conference call with analysts and investors conducted on March 02, 2026.
- Audio recording link made available on the official bank website for public access.
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- Bank confirms that a written transcript will be submitted to the exchanges separately.
Fino Payments Bank has clarified that the GST investigation by the Director General of GST Intelligence is focused on third-party program managers and not the Bank's own compliance. The Bank stated it has not evaded any GST dues, has no involvement in betting activities, and expects no financial liability from the matter. Importantly, the Bank reaffirmed its 18-month timeline for Small Finance Bank (SFB) conversion, expecting to complete it ahead of schedule. Operations remain normal as the Bank continues to cooperate with authorities regarding the program managers in question.
- Investigation targets program managers sourcing merchants for UPI transactions, not the Bank itself.
- Bank expects zero financial liability and confirms full compliance with all GST regulations on revenue.
- Reaffirmed 18-month timeline for conversion into a Small Finance Bank (SFB) as per RBI guidelines.
- Clarified that funds are settled to external bank accounts as Fino does not hold current accounts for these entities.
- Denied any involvement in betting platforms or the issuance of alleged fake invoices.
Fino Payments Bank (FINOPB) has scheduled an emergency group analyst and investor conference call for March 02, 2026, at 8:00 AM IST. The primary purpose of this call is to provide clarifications on a recent GST-related development that was disclosed by the bank on February 27, 2026. The call is being organized at short notice, indicating the bank's intent to manage investor sentiment regarding the tax matter. The session will be moderated by Go India Advisors and will not include any unpublished price sensitive information.
- Conference call scheduled for Monday, March 02, 2026, at 8:00 AM IST.
- Meeting specifically addresses recent GST developments disclosed on February 27, 2026.
- Call hosted by Go India Advisors with universal dial-in numbers +912262801557 and +912271158383.
- The bank confirms that no unpublished price sensitive information (UPSI) will be shared during the interaction.
Fino Payments Bank has issued a clarification regarding an ongoing GST investigation involving third-party program managers who work with several banks. The bank and its MD & CEO, Rishi Gupta, have explicitly stated they have no involvement in the actions of these program managers. Management assured investors that business operations remain uninterrupted and the bank continues to be compliant with all GST laws. The bank is extending full cooperation to the authorities and maintains that its corporate governance framework remains robust.
- Clarification follows a previous disclosure dated February 27, 2026, regarding a GST investigation.
- The investigation targets program managers who maintain relationships with multiple banking institutions including Fino.
- MD & CEO Rishi Gupta and the bank's management denied any connection to the actions of the program managers.
- Management confirmed that there will be no impact on customer services or daily business operations.
- The bank reiterated its commitment to legal compliance and is cooperating with the ongoing judicial process.
Fino Payments Bank's MD & CEO, Rishi Gupta, was arrested on February 27, 2026, under the CGST and SGST Act, 2017. The bank clarified that the investigation relates to its business partners and not the bank's own GST compliance. To ensure continuity, the Board has appointed CFO Ketan Merchant as the Head of the Organization to oversee daily operations. While the bank claims no immediate financial impact, the arrest of a top executive is a critical governance event that may attract regulatory scrutiny.
- MD & CEO Rishi Gupta arrested under Section 132(1)(a) and 132(1)(i) of CGST and SGST Act, 2017
- CFO Ketan Merchant appointed as interim Head of Organization to manage day-to-day operations
- Investigation pertains to business partners of the bank rather than the bank's own tax compliance
- The arrest occurred on February 27, 2026, with the ground of arrest issued at 03:55 a.m. IST
- The bank has officially reported the matter to the Reserve Bank of India (RBI)
Fino Payments Bank has initiated a postal ballot to seek shareholder approval for the re-appointment of Mr. Rishi Gupta as MD & CEO for a three-year term effective May 2, 2026. The bank is also seeking approval for his FY 2024-25 total remuneration of ₹5.70 crore, which includes a fixed pay of ₹2.44 crore and a variable pay of ₹3.26 crore. The variable component is split equally between cash and share-linked instruments, both subject to RBI-mandated deferral schedules. This move aims to ensure leadership continuity as the bank executes its long-term growth strategy.
- Proposed re-appointment of Rishi Gupta as MD & CEO for a 3-year term from May 2, 2026, to May 1, 2029.
- Total remuneration for FY 2024-25 proposed at ₹5.70 crore, including ₹2.44 crore fixed pay.
- Variable pay of ₹3.26 crore is subject to malus and clawback clauses as per RBI guidelines.
- E-voting period for shareholders is scheduled from February 28, 2026, to March 29, 2026.
- Remuneration includes ₹1.63 crore in share-linked instruments deferred over a three-year vesting period.
Fino Payments Bank Limited has scheduled a one-on-one meeting with Bandhan AMC Limited on February 20, 2026. The meeting is conducted via video conference and is scheduled for a duration of one hour from 4:30 PM to 5:30 PM IST. The bank has explicitly stated that only publicly available information will be discussed during this interaction. This is a routine engagement under SEBI Listing Regulations to maintain transparency with institutional investors.
- One-on-one meeting scheduled with Bandhan AMC Limited.
- Interaction set for February 20, 2026, via Video Conference.
- Meeting duration is fixed for 60 minutes between 4:30 PM and 5:30 PM IST.
- Compliance with Regulation 30 of SEBI Listing Regulations ensured.
- No unpublished price sensitive information (UPSI) to be shared during the meet.
Financial Performance
Revenue Growth by Segment
The 'Growing Business' segment (CASA & Digital Payment Services) grew 5% YoY to INR 222.9 Cr in Q2 FY26, now contributing 56% of total revenue. The 'Stable Business' (CMS & BC Banking) declined 11% YoY to INR 65.6 Cr, while the 'Traditional Business' (DMT, MATM & AePS) saw a significant 46% YoY contraction to INR 78.6 Cr due to regulatory shifts and UPI adoption.
Geographic Revenue Split
Not disclosed in available documents, though the bank mentions testing secured lending products in 4-5 specific states as a precursor to its Small Finance Bank (SFB) transition.
Profitability Margins
Net Revenue Margin improved significantly by 575 bps YoY to 37.1% in Q2 FY26. Operating profit margin stood at 5.9% for FY25, while Net Profit Margin was 5.0%. The margin expansion is driven by a structural shift from low-margin transaction business (20% of mix) to high-margin CASA products (40% of mix).
EBITDA Margin
EBITDA margin reached a record high of 15.4% in Q2 FY26, expanding 284 bps YoY from 12.6%. This was achieved through disciplined cost control and a better product mix, with H1 FY26 EBITDA rising 12% YoY to INR 123.3 Cr.
Capital Expenditure
Not disclosed in absolute INR Cr, but the bank is investing in technology, data, and partnerships to build scale for its SFB conversion, including a core banking system implementation planned for the end of the calendar year.
Credit Rating & Borrowing
The bank holds an [ICRA]BBB+ (Stable) and [ICRA]A2+ rating. Borrowings have increased to fund treasury operations, with the bank maintaining an efficient liability structure featuring a cost of funds at just 1.9% in Q2 FY26.
Operational Drivers
Raw Materials
The primary 'input costs' for the bank are interest expenses on deposits (Cost of Funds at 1.9%) and merchant commissions/product costs, which resulted in a product cost margin leaving a net revenue margin of 37.1%.
Import Sources
Not applicable for a payments bank; sourcing is domestic through a network of merchants and digital channels across India.
Key Suppliers
Not applicable; the bank relies on a distribution-led network of merchants and technology partners for its asset-light model.
Capacity Expansion
The bank operates an asset-light distribution network. It is currently transitioning to a Small Finance Bank (SFB) model, which will allow it to expand from a payments-only entity to a full-service lending institution.
Raw Material Costs
Product costs are the primary variable expense; the bank achieved a 37% revenue margin after product costs in Q2 FY26, the highest in its history, by reducing dependence on low-yield transaction products.
Manufacturing Efficiency
Not applicable; however, the bank tracks 'Throughput' (gross value of transactions), which saw a moderation in digital payments due to a risk-calibrated approach and enhanced regulatory scrutiny.
Logistics & Distribution
Distribution is handled via a merchant network; renewal income from this network grew 36% YoY to INR 62 Cr, indicating high customer and merchant stickiness.
Strategic Growth
Expected Growth Rate
26%
Growth Strategy
The bank is executing its 'TAM' (Transaction, Acquisition, Monetization) strategy, focusing on converting to a Small Finance Bank (SFB). This transition is expected to double Net Interest Margins (NIM) by allowing the bank to lend its deposits (costing 1.9%) at higher yields, moving away from a fee-only model.
Products & Services
CASA accounts, Cash Management Services (CMS), Remittances (DMT), Micro ATM (MATM) transactions, AePS, UPI payments, and third-party insurance/investment products.
Brand Portfolio
Fino Payments Bank, Fino 2.0 (Digital)
New Products/Services
Foray into secured lending products and expanded liability franchise following SFB conversion; digital payment services now account for 21% of revenue.
Market Expansion
Targeting 'Bharat' (rural/semi-urban India) through an asset-light model; testing lending sourcing in 4-5 states to explore geographical potential.
Market Share & Ranking
The bank's UPI transactions contribute 1.45% of the overall UPI ecosystem as of Q2 FY26.
Strategic Alliances
Collaborations with 230 companies for CMS, including NBFCs, e-commerce, and logistics firms to manage cash efficiently.
External Factors
Industry Trends
The industry is shifting from traditional transaction rails (MATM/AePS) to UPI and annuity-based relationship banking. Regulatory oversight on fintechs is increasing, requiring higher compliance standards.
Competitive Landscape
Intense competition from traditional banks and fintech giants like Paytm, PhonePe, and Razorpay who are leading in the digital payments space.
Competitive Moat
Moat is built on a massive, asset-light merchant distribution network and a very low cost of funds (1.9%). This network effect is sustainable as it provides 'last-mile' connectivity that traditional banks struggle to reach profitably.
Macro Economic Sensitivity
Sensitive to Indian GDP growth (6.5% in FY25) and rural economic health, as it targets the 'remotest areas' for financial inclusion.
Consumer Behavior
Rapid adoption of UPI is changing payment behavior, leading the bank to focus more on 'Customer Ownership' and average deposit growth (+36% YoY).
Geopolitical Risks
Minimal direct impact, though broader economic uncertainty (e.g., US election impacts on FDI) can affect the general fintech investment climate.
Regulatory & Governance
Industry Regulations
Subject to strict RBI guidelines for Payments Banks; currently holds 'in-principle' approval for SFB conversion, which requires adherence to higher governance and capital standards.
Taxation Policy Impact
The bank became a tax-paying entity starting Q2 FY25, which impacted YoY PAT comparisons (PAT down 27% to INR 15.4 Cr despite higher EBITDA).
Legal Contingencies
Not disclosed in available documents; the bank emphasizes 'robust governance' and 'compliance' as key to its SFB approval.
Risk Analysis
Key Uncertainties
Regulatory risk is paramount, as changes in remittance or digital payment norms can immediately impact 20-30% of revenue. Cybersecurity threats are also cited as a critical cost and operational risk.
Geographic Concentration Risk
Primarily focused on the Indian market, specifically rural and semi-urban 'Bharat' segments.
Third Party Dependencies
High dependency on a network of merchants for transaction execution and customer acquisition.
Technology Obsolescence Risk
The bank is mitigating this by implementing a new core banking system and investing in 'Fino 2.0' digital initiatives to keep pace with UPI and digital-first competitors.
Credit & Counterparty Risk
Currently low as a payments bank (no lending), but will increase as it transitions to an SFB and begins its foray into secured lending.