Fino Payments Bank Sees Massive 304% Jump in Loan Disbursals

Disbursals: ₹241 Cr (Up 304% YoY)
Average Total Deposits: ₹2,766 Cr (Up 12% YoY)

Reader Takeaway: Lending pivot shows promise, but transaction volume decline is a concern.

What just happened

Fino Payments Bank reported significant year-on-year growth in loan disbursals, which rose 304% to ₹241 crore for July 2026. This was alongside a 12% increase in average total deposits, reaching ₹2,766 crore. However, transaction throughput saw a 25% decline to ₹3,074 crore. The bank also exited its B2B UPI product segment.

Why this matters

The substantial growth in loan referral disbursals signals a strategic shift towards a lending-led business model, which could offer higher revenue margins. This pivot is occurring as the bank actively pursues its transition to a Small Finance Bank (SFB), a key objective for its future operations. The decline in transaction throughput and exit from the B2B UPI segment indicate a restructuring of its revenue streams.

The backstory

Fino Payments Bank has been working towards converting into a Small Finance Bank, a process involving significant changes in its operational and governance structures. The bank's performance metrics reflect ongoing strategic realignments, including a focus on growing its lending book while managing its traditional transaction services.

What changes now

The bank is prioritizing the SFB transition, focusing on people, technology, processes, and governance to meet RBI timelines. The growth in loan referrals is a key indicator of this strategy's early execution. Simultaneously, the exit from the B2B UPI P2M business means the bank will no longer generate fee income from this specific channel.

Risks to watch

A primary concern is the 25% drop in transaction throughput, suggesting a potential slowdown in core business activity. The discontinuation of the B2B UPI business also represents a loss of a previous income source. Investors will be watching if the higher-margin lending business can sufficiently compensate for the reduction in fee-based income and transaction volumes.

Peer comparison

While direct comparisons are difficult without specific peer data for July 2026, the trend of payments banks exploring lending avenues and undergoing SFB transitions is becoming more common in the Indian fintech landscape. Other players are also focusing on customer acquisition and digital engagement.

Context metrics (time-bound)

As of July 2026, Fino Payments Bank had 66.3 lakh digitally active customers, a 21% YoY increase. FinoPay active customers grew 34% YoY to 8.9 lakh. In July 2025, disbursals were ₹60 crore and transaction throughput was ₹4,101 crore.

What to track next

Investors should closely monitor the progress of the Small Finance Bank transition, including regulatory approvals and operational readiness. Key financial metrics to watch include the continued growth of loan disbursals, the stability of deposit growth, and the performance of remaining transaction services against the backdrop of declining throughput.