Earnings Call Transcript of the Earnings Call held on April 30, 2026
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Fino Payments Bank reported Q4 FY'26 with revenue declining 31% YoY due to regulatory-driven digital payment contraction, industry-wide DMT remittance collapse, and NBFC/MFI sector weakness. However, the bank showed strong deposit momentum with total deposits hitting an all-time high of ₹2,957 crores and 1.75 crore CASA accounts (up 22% YoY). March 2026 saw 3.2 lakh new account openings, the highest in 3 years, demonstrating franchise resilience despite management disruption. Renewal income reached ₹62.2 crores in Q4 (highest ever) and ₹237 crores for full year (up 25% YoY). The bank completed its Finacle core banking migration (₹200 crore investment) and received RBI in-principle approval on December 5 to convert to a Small Finance Bank - the first payment bank to receive such approval. Q4 referral disbursals were ₹592 crores (97% sequential increase) ahead of SFB launch. The bank deliberately derisked its digital payments business, reducing active clients from 347 to 229, and paused UPI P2M business for review.
Revenue decline is short-term and externally driven; strong deposit growth and record renewal income signal durable franchise value. SFB transition on track with 83% capital adequacy ratio providing sufficient buffer. Focus shifting to higher-margin CASA and liability business.