Fino Payments Bank Posts ₹92.5 Cr FY26 Profit, SFB Transition Advances

FY26 Financial Performance

Fino Payments Bank has reported its audited financial results for the fiscal year ending March 31, 2026. The bank posted a net profit of ₹92.53 crore on total income of ₹1,847.10 crore.

The statutory auditors issued a clean audit report on these results. The bank also reappointed Aninda Mukherjee as Chief Risk Officer for a three-year term, effective May 3, 2026, providing leadership continuity.

Results for the period were affected by an exceptional item of ₹4.4 crore, related to new Labour Codes.

Strategic Shift to Small Finance Bank

Fino Payments Bank is advancing its strategic goal to become a Small Finance Bank (SFB). The bank received in-principle approval from the Reserve Bank of India (RBI) on December 5, 2025, for this transition. This move is significant as it will enable Fino to offer a broader range of financial services, including lending, expanding its growth potential.

Fino operates with a 'phygital' (physical plus digital) model, utilizing an extensive merchant network to serve customers mainly in rural and semi-urban areas, with revenue primarily generated from fees and commissions.

The bank and its leadership previously faced scrutiny. In late February 2026, its MD & CEO, Rishi Gupta, was arrested in connection with an alleged GST evasion investigation. He was later granted bail on March 26, 2026, under specific conditions. The bank stated it maintained operational stability and cooperated with authorities.

Risks and Governance

Past governance issues, such as the earlier arrest and subsequent bail of the MD & CEO, highlight the ongoing need for vigilance in corporate governance and regulatory compliance.

The ₹4.4 crore exceptional item related to new labour regulations represents a direct cost impacting the fiscal year's reported profit.

Competitive Landscape

Fino Payments Bank operates in a competitive market alongside other payments banks such as Airtel Payments Bank, India Post Payments Bank, and Jio Payments Bank. Its planned transition to an SFB will position it to compete more directly with existing Small Finance Banks.

Financial Strength

As of March 31, 2026, the bank's audited Capital Adequacy Ratio (CAR) stood at a strong 83.95%, significantly exceeding regulatory requirements.

Future Outlook

Investors will monitor several key areas:

• Progress and timelines for the final approval and completion of the Small Finance Bank transition.
• FY27 performance, focusing on cost management and revenue growth within the new SFB model.
• Adherence to RBI guidelines and the management of any remaining governance matters.
• Growth in digital transactions and the contribution of technology-driven services.
• Customer and merchant base acquisition and retention under the evolving structure.