Q3 2026 Fino Payments Bank Ltd Earnings Call Transcript
Key Points
- Fino Payments Bank Ltd (BOM:543386) received in-principle approval from the Reserve Bank of India to transition into a small finance bank, marking a significant milestone.
- The bank has a strong CASA-based liability of about INR2,500 crores, providing a low-cost funding source.
- Digital engagement has strengthened, with digital transaction count growing 17% year-on-year.
- The bank's merchant-led ecosystem engages over 20 lakh merchants, offering a deep on-ground footprint and lower acquisition costs.
- The transition to a small finance bank is expected to drive a 20% plus ROE in the medium term, leveraging low-cost funds and disciplined credit costs.
- Revenue for Q3 FY26 declined by 15% year-on-year, reflecting challenges in transaction-led business and digital segments.
- The CMS segment faces pricing competition and structural shifts, leading to a decline in revenue.
- Transaction-led segments, including remittance and AEPS, saw a decline in revenue due to a shift towards digital channels.
- The digital payments business experienced a 43% year-on-year decline in Q3 FY26 due to regulatory tightening.
- Operating expenses remain tightly controlled, but the cost-to-income ratio for the quarter stood at 33.1%, reflecting temporary revenue moderation.
Ladies and gentlemen, good evening, and welcome to the Fino Payments Bank Q3 FY26 Earnings Conference Call hosted by Go India Advisors. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Raashi Khatri from Go India Advisors. Thank you, and over to you, Ms. Khatri.
Thank you Swapnali. Good afternoon, everyone, and welcome to the Q3 and 9M FY26 Earnings Call of Fino Payments Bank. We have on call Mr. Rishi Gupta, Managing Director and Chief Executive Officer; Mr. Ketan Merchant, Chief Financial Officer; and Mr. Anup Agarwal, Head of Finance and Investor Relations.
We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risks that the company faces. May I now request the management to take us through the financials and the business outlook subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
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