Fino Payments Bank reported a 253% surge in loan referrals to ₹240 crore for June 2026, while new account openings rose 31%. The bank continues to pivot toward its Small Finance Bank goal despite a moderation in transaction throughput due to the rise of UPI.
Fino Payments Bank Ltd. reported a significant shift in its business mix for June 2026, highlighted by rapid growth in its loan referral operations. The bank facilitated loan disbursals worth ₹240 crore during the month, marking a 253% increase compared to ₹68 crore in the same period last year. This aggressive growth in referrals is a key strategic move as the company works toward transitioning into a Small Finance Bank, aiming to monetize its existing customer base through credit services.
Customer Base and Digital Adoption Trends
The bank’s reach continues to expand, with 3.13 lakh new accounts opened in June 2026, a 31% increase from the 2.39 lakh accounts added in June 2025. This brings the total number of accounts to 1.8 crore. Along with new customer acquisition, existing customers are increasingly using the bank's digital channels. Digitally active customers rose 22% year-on-year to 64.7 lakh, while active users of the FinoPay mobile application grew by 38%, reaching 8.4 lakh. Total deposits also saw steady growth, rising 11% year-on-year to ₹2,755 crore.
Transaction Business and Regulatory Context
While the bank’s digital and lending segments are growing, its traditional transaction business—which includes services like remittances and micro-ATM withdrawals—has seen a shift. Transaction throughput fell to ₹2,830 crore in June 2026 from ₹4,373 crore in June 2025. The bank noted that this decline is partly due to the broad industry-wide move toward UPI and a conscious strategy to focus on higher-quality merchants, adding that the pace of this decline is now slowing.
The performance update arrives as the bank manages ongoing regulatory attention. In March 2026, reports surfaced indicating the Directorate General of GST Intelligence (DGGI) was examining transactions involving certain merchants and program managers. Fino Payments Bank has publicly stated that it is not the subject of investigations beyond the DGGI’s inquiry into third-party entities. The bank maintains it does not engage in, support, or promote online gaming or betting activities and has confirmed its compliance with GST regulations.
Investors will likely track whether the bank can successfully offset the moderation in traditional transaction volumes with higher income from its growing loan referral and digital service segments. The progress of its application and operational requirements for the Small Finance Bank license remains a primary area for future updates.