Fino Payments Bank reported a 223% jump in loan referral disbursals to ₹278 crore for September 2026, though new account openings declined by 17%. Investors are balancing this lending push against a 10% drop in transaction throughput, as the company continues its transition toward a Small Finance Bank model.
Fino Payments Bank has posted a mixed operational update for September 2026, highlighting a shift in its business focus as it moves toward becoming a Small Finance Bank (SFB). While the lender saw substantial growth in its lending and deposit verticals, core operational metrics, including new customer acquisition and transaction volumes, faced pressure.
Loan referral disbursals recorded a sharp rise, reaching ₹278 crore in September, a 223% increase compared to the same period last year. The bank’s average total deposits also showed steady growth, climbing 13% year-on-year to ₹2,794 crore. Renewal income rose 20% to ₹28 crore, indicating that the existing customer base remains active in utilizing recurring banking services. Furthermore, Cash Management Services (CMS) throughput grew 10% to ₹6,918 crore, reflecting continued utility in this segment.
However, these gains were accompanied by a decline in new business generation. The number of new deposit accounts opened in September fell 17% to 2,44,763 from 2,94,846 in the previous year. Additionally, the bank's overall transaction throughput contracted by 10%, falling to ₹3,469 crore. The total absence of B2B Unified Payments Interface (UPI) person-to-merchant (P2M) throughput during the month further underscored the volatility in transaction-based revenue streams.
These results arrive as the bank navigates a significant strategic transition to become an SFB. This pivot generally involves reorienting the business toward higher-margin lending and long-term deposit growth, which may explain the deceleration in high-volume, low-margin transaction services. However, this transition is occurring alongside management and regulatory pressures. The bank recently extended the tenure of its interim CFO, Anup Agarwal, by up to three months effective October 6, 2026, pointing to a period of leadership continuity management.
Investors are also tracking the regulatory environment, as fintech-focused lenders continue to face scrutiny regarding GST-related investigations involving third-party partners. These headwinds, combined with a broader cooling in fintech transaction volumes, have kept market sentiment cautious. As the bank works to secure its final approvals for the SFB license, the key monitorable for the coming quarters will be its ability to balance this lending-led growth with a recovery in new account acquisition and transaction throughput. Stakeholders will likely watch for further updates on the SFB licensing timeline and signs that the contraction in new user growth is being addressed.