Fino Payments Bank posts ₹20.9 crore Q2 loss on margin compression

Fino Payments Bank reported a net loss of Rs 20.9 crore in the July-September quarter of FY27, with profitability affected by margin compression and higher depreciation following the migration of its core banking system.

Revenue rose 9 per cent sequentially to Rs 333.6 crore, while earnings before interest, taxes, depreciation and amortisation declined 19 per cent to Rs 35.1 crore.

“Although revenue increased sequentially, profitability dipped due to margin compression and the depreciation impact of our core banking migration. While these investments may pressure short-term earnings, we remain committed to building a resilient and sustainable bank through product innovation, financial discipline, and targeted growth”,  Anup Agarwal, Interim Chief Financial Officer, Fino Payments Bank. 

For the first half of FY27, the bank reported a net loss of Rs 34.6 crore, with revenue declining 25 per cent year-on-year (YoY) to Rs 640.5 crore. EBITDA fell 37 per cent to Rs 78.2 crore.

The payments bank’s loan referral disbursals surged 286 per cent YoY to Rs 762 crore in Q2FY27. Disbursals stood at Rs 1,390 crore in H1FY27, surpassing the full-year figure for FY26, as the bank prepares for its transition into a small finance bank (SFB).

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“The Bank is in consolidation phase and is working towards strengthening its core retail business and restoring growth momentum in B2B businesses,” said Ketan Merchant, interim chief executive officer.

Fino has onboarded senior leadership across branch banking, liabilities, micro, small and medium enterprises (MSMEs), and credit risk as part of its SFB preparations. It is also investing in technology, infrastructure and operational capabilities.

The bank’s net revenue margin improved 96 basis points YoY to 38.1 per cent in Q2FY27. Its current account and savings account (CASA) business remained a key growth driver, with revenue rising 9 per cent YoY and accounting for 52 per cent of total revenue. Renewal income increased 7 per cent to a record Rs 74.6 crore.