Fino Payments Bank has released its FY2025-26 Business Responsibility and Sustainability Report, reporting a turnover of ₹1,587.9 crore. While the bank highlighted progress in digital adoption and ESG governance, it disclosed a ₹11.92 crore lien marked by the CID on a bank account linked to merchant services. The bank is currently contesting this in the High Court of Karnataka. Additionally, the report outlines regulatory penalties from the RBI and SEBI, alongside updates on its high employee turnover rate.
Fino Payments Bank FY26 ESG Report: Key Financials and Operational Risks
Total Income: ₹1,587.9 crore | Net Worth: ₹805.21 crore
Reader Takeaway: Strong digital adoption and governance framework offset by high employee turnover and pending legal proceedings regarding CID liens.
What just happened
Fino Payments Bank has published its Business Responsibility and Sustainability Report (BRSR) for FY2025-26. The bank detailed its strategic ESG governance structure, which involves three tiers ranging from the Board-level CSR & ESG Committee to an operational Core Sustainability Committee tracking 42 key performance indicators.
Why this matters
The report provides transparency on non-financial risks and operational health. While the bank continues to scale its digital user base, investors must account for specific legal and regulatory developments that impact the firm's balance sheet and operational flow.
Regulatory and Legal Updates
The bank disclosed three significant regulatory and legal developments:
- RBI Penalty: A fine of ₹29.60 lakhs under the Banking Regulation Act.
- SEBI Settlement: A payment of ₹5.88 lakhs to settle alleged violations of LODR regulations.
- CID Lien: A lien of ₹11.92 crore was marked on a bank account by the CID regarding an investigation into four merchants. The bank has clarified that it and its employees are not implicated. The matter is currently under appeal in the High Court of Karnataka after a lower court rejected the bank's application to remove the lien.
Human Capital
As of the end of FY26, the bank maintained a permanent workforce of 2,848. The company is managing an employee turnover rate of 47%, a slight increase from 46% in the previous fiscal year, though lower than the 60% recorded in FY2023-24. Women hold 37.5% of the Board of Directors seats.
Operational Sustainability
- Cybersecurity: The bank reported zero material data breaches and achieved 100% completion of cybersecurity training.
- Digital Growth: The firm surpassed its target of 6 million digitally active users.
- E-waste: Disposed of 3.287 metric tonnes of e-waste through authorized recyclers.
What to track next
Investors should closely monitor the outcome of the High Court proceedings regarding the ₹11.92 crore lien, as it represents a significant contingent operational constraint. Furthermore, tracking whether the bank can successfully lower its 47% employee turnover rate will be key to long-term operational efficiency.