Fino Payments Bank’s September quarter net rises 74%, revenue up 35%
Fino Payments Bank posted 74 per cent rise in net profit on a year-on-year basis (Y-o-Y) at Rs 7.89 crore in the second quarter ended September 2021 (Q2FY22) from Rs 4.52 crore a year ago quarter (Q2FY21).
Its revenue during the reporting quarter was up by 35 per cent YOY to Rs 242.15 crore from Rs 179.2 crore in the quarter ended September 2021 (Q2FY21). The rise came on the back of growth from streams including 32 per cent in transaction revenue, 43 per cent in subscription income, and 35 per cent in open banking, the bank said in a statement.
At present, it is the only payments bank listed on the bourse. Payments banks can solicit deposits. While payment banks are barred from giving loans, they can earn fee-based income by providing services and investment income.
The operating expenses grew by 36 per cent YOY to Rs 230.83 crore in Q2FY22 from Rs 169.51 crore in Q2FY21, primarily due to an increase in product costs and manpower costs. It ramped up on the street team during the quarter.
Ketan Merchant, Chief Financial Officer said, investment in technology and operating leverage is beginning to yield results. Its strategy to focus on growth resulted in ramp-up of feet on street teams. However, revenue per employee has grown in Q2FY22 resonating with the philosophy of focus on growth and profitability.
The new Current and Savings Accounts opened during the quarter jumped by 56 per cent YOY.
The Annualised Return on Equity (RoE) of Q2FY22 is at 20 per cent.
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