Fino Payments Bank Sees 27.5% Drop in Q2 FY26 Net Profit

Fino Payments Bank has reported a significant 27.5% year-on-year decline in its net profit for the second quarter of fiscal year 2026. The net profit stood at INR 15.3 crore, down from INR 21.1 crore recorded in the same quarter last fiscal year. Sequentially, the profit also saw a decrease of 13.5% from INR 17.7 crore in the previous quarter.

The bank's income from interest, which is a core revenue stream, saw a healthy increase of 26% year-on-year, reaching INR 60.1 crore. This indicates growth in its lending or interest-earning asset base. However, 'other income,' which typically includes fees, commissions, and other non-interest revenue, declined by 16.6% year-on-year to INR 407.6 crore. This drop in other income is a key factor affecting overall profitability.

On the expenditure front, Fino Payments Bank managed to reduce its total expenses by 11.8% year-on-year, bringing them down to INR 378.8 crore. This cost control measure is positive.

Impact: The decline in net profit, particularly due to lower 'other income' despite a rise in interest income, could be a concern for investors. While expense management is positive, the pressure on non-interest revenue might weigh on the stock. Impact Rating: 6/10

Difficult Terms: Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from the total revenue. YoY (Year-on-Year): A comparison of a period's performance with the same period in the previous year. QoQ (Quarter-on-Quarter): A comparison of a quarter's performance with the immediately preceding quarter. Interest Income: Income earned by a financial institution from lending money or from its investments that yield interest. Other Income: Revenue generated from sources other than the primary business operations, such as fees, charges, or gains from the sale of assets. Total Expenses: The sum of all costs incurred by a company in its operations during a specific period.