Fino Payments Bank is targeting upwards of Rs 5 trillion of overall business in FY25, higher than Rs 3.58 trillion in FY24, MD & CEO Rishi Gupta told FE in an interaction.
“We crossed Rs 1 trillion of total business (throughput) for the first time in March quarter. Overall 42% of business was through digital channels. As entire economy moves towards the digital side, expecting over Rs 5 trillion in FY25 is not out of proportion,” he said.
The payments bank is expecting to onboard over 3 million-3.5 million customers in the current fiscal, he said, adding that overall current account and savings account (CASA) deposits will grow by over Rs 400 crore in FY25. The payment bank’s average deposits grew 49% year-on-year (YoY) to Rs 1,352 crore in FY24. It will add nearly 250,000 lakh to 300,000 customer service points (CSPs) in the current fiscal to achieve deposit growth target.
Fino Payments Bank spent Rs 103 crore on modernising the infrastructure and digital prowess of the company in FY24 and will continue investing more in the field to increase transaction speed, manage higher volumes and upgrade cyber-security infrastructure. “We have undertaken a project to overhaul entire IT system and are accordingly looking to allocate IT spends,” he said.
The payments bank is the first entity of its nature to have applied for a small finance bank (SFB) license with the Reserve Bank of India (RBI) in January this year. However, Gupta said that transaction business will continue driving the core income of the entity after SFB conversion.
Lending and cross sell would be the biggest focus items for Fino in a SFB avatar, but even after 3-4 years of completion of operation as a SFB, the two products would only account for 20-%-25% of overall income.
On the lending side, working capital loans for Fino’s merchants and personal, consumer loans would be the focus for customers, whereas insurance and mutual fund would be the core drivers of cross sell business, he added.