Q3 2025 Fino Payments Bank Ltd Earnings Call Transcript
Key Points
- Fino Payments Bank Ltd (BOM:543386) reported a 25% year-on-year growth in revenue, reaching INR461 crores, driven by strong digital services and operational efficiency.
- The company achieved a 26% year-on-year growth in transaction value, largely due to increased UPI usage, with digital throughput now accounting for 50% of overall throughput.
- Fino Payments Bank Ltd (BOM:543386) added over 8.3 lakh new CASA accounts in the quarter, bringing the total to more than 1.34 crore customers, with a high engagement rate of 70% active accounts.
- The bank's CMS business demonstrated strong growth, achieving 97.5% of the previous fiscal year's throughput in just nine months, with a diversified client base.
- Investments in technology and digital infrastructure have started yielding benefits, with a reduction in the cost-income ratio to 25.9% from 27% in the previous year.
- The remittance business experienced a decline due to new regulatory guidelines, resulting in a 5% revenue impact and a 35-40% drop in business volume.
- Merchant network growth has slowed, with the addition of new merchants becoming more challenging due to market saturation and digital transition.
- Despite strong digital growth, the company faces challenges in monetizing UPI transactions on the B2C side due to zero MDR (Merchant Discount Rate).
- The competitive landscape in the CMS sector is leading to pressure on margins, which are expected to remain range-bound.
- The company continues to face increasing compliance costs, which could impact future profitability if not managed efficiently.
Ladies and gentlemen, good day, and welcome to the Fino Payments Bank Limited Q3 FY25 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 Mr. Rajat Gupta from Go India Advisors. Thank you, and over to you, sir.
Yes. Thank you, Rico. Good afternoon, everyone, and welcome to Fino Payments Bank Earnings Call to discuss the Q3 FY25 results. We have on the call with us today, Mr. Rishi Gupta, Managing Director and Chief Executive Officer; Mr. Ketan Merchant, Chief Financial Officer; and Mr. Anup Agarwal, Head, 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 risk that the company faces. I now request Mr. Rishi Gupta to take us through the company's business outlook and financial highlights, subsequent to which, we'll open the floor for Q&A.
Thank you, and over to you,
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