Fino Payments Bank on Tuesday said its transition to a small finance bank (SFB) remains on track as it continues to strengthen lending capabilities, technology infrastructure and deposit franchise.
“The bank’s SFB implementation journey is on track with complementary technology, infrastructure and resource augmentation,” the lender said in a filing with the exchanges.
According to the business update, the bank opened 294,000 new accounts in May, up 29% year-on-year, while average deposits rose 10% to Rs 2,762 crore. The number of digitally active customers increased 19% on year to 626,000 during the month.
As part of its preparations to the transition to an SFB, Fino has entered into a strategic partnership with Ezee.ai to build a lending ecosystem. It is also strengthening the merchant network and augmenting technology and resources.
Loan referral disbursals nearly tripled to Rs 210 crore in May from Rs 73 crore a year ago. The bank said it continues to focus on sourcing secured loans and that growth in the segment supports its long-term vision of building a differentiated SFB.
While its liability franchise remained resilient, transaction throughput declined 48% on year to Rs 2,546 crore. The bank attributed the moderation to an ongoing shift in the payments ecosystem from cash-based transactions to UPI and its focus on higher-quality merchants.