Fino Payments Bank Ltd

Interim CEO tenure extension

• Board approved a 3-month extension of Interim CEO Ketan Merchant, effective Aug 27, 2026, subject to RBI approval.
• He will continue as KMP and Senior Managerial Personnel during the extension.

Meeting Details

• Date & time: August 25, 2026, 01:30–02:30 IST
• Type/Mode: One-to-One, In Person
• Organizer: Infinity Alternatives Advisors LLP
• Venue: Lower Parel, Mumbai

Purpose

• Purpose: Discuss matters with investor/analyst; only public-domain information will be shared

Participants

• Company representatives: Company Secretary & Compliance Officer

Additional Notes

• Schedule subject to change
• Disclosure will be available on Fino Payments Bank website

Financial Performance

• Net revenue margin rose to 42.8% in Q1 FY27; +275 bps sequential, +925 bps YoY.
• EBITDA 43.1 crores; down from 56 crores in Q4 FY26 due to UPI P2M pause.
• CASA share of revenue rose to 54% in Q1 FY27, from 45% in Q4 FY26.
• Average total deposits at INR 2,772 crores; up 12% YoY.
• Renewal income 67.5 crores; up 7% YoY.
• New accounts added 8.4 lakh; total accounts 1.83 crore.
• UPI throughput 60,000 crores; up 14% YoY.
• Digitally active customers 64.6 lakh; up 22% YoY.
• Referral lending disbursals 628 crores; +214% YoY; ~50% of FY26 total.
• B2B CMS throughput 18,000 crores; +26% sequential.
• Remittance/AePS/Micro-ATM revenue down 13% sequential.
• Fee-based income 234 crores in Q1 FY27; ~75% of revenue.
• Cost of funds 1.4%.
• Blended SFB portfolio yield around 14%.

Liability Franchise and Growth Updates

• Referral lending: ~90% secured; average portfolio yield ~14% for SFB.
• Network covers >95% of India's PIN codes; merchant network ~20 lakh.
• RBI SFB timeline: 18 months; readiness by end of Q4 FY27 (5 Dec 2025 to 5 Jun 2027).
• PwC engaged; Finacle core; LOS/LMS modules; readiness by Feb '27.
• Three strengths: low-cost liability, asset-light secured lending, tech-led platform.
• Capital position comfortable above regulatory requirement for SFB; FY30 plan unchanged.
• Technology and AI-led automation central to growth.

SFB Transition and Technology Roadmap

• SFB timeline: RBI 18-month window; readiness by end Q4 FY27.
• Senior leadership join between Sep–Oct; CEO-level hires planned.
• LOS/LMS and key systems being implemented; platform stabilization post core move.
• SFB technology readiness targeted by Feb 2027; platform supports faster product launches.
• Cost of funds advantage ~300 bps vs peers; yields ~14% on SFB portfolio.
• FY30 plan unchanged; focus on fee-based growth plus secured lending.

Q&A Highlights

• MDR impact: management said there would be qualitative upside; not quantified yet.
• BPCL stake: no plan to offload; HoldCo/OpCo structure remains unchanged.
• Opex for SFB: expected around INR 10 crores in this year.
• ROE guidance: 20%+ target remains on track.
• BC/reverse merger: RBI does not require; HoldCo/OpCo structure unchanged; organic plan.

Outlook and Guidance

• FY27 is a year of consolidation; focus on SFB transition and investing in people/technology.

Business Overview

• Core business is Payments Bank focusing on CASA deposits and digital payments through Finol.
• SFB readiness progressing, LOS & LMS identified, with consultant support.
• Liability-first strategy underpins growth; SFB transition on track.
• Revenue mix shows CASA share at 54% of product revenue.

Key Operational Highlights

• Average total deposits grew 12% YoY to ₹2,772 Cr in Q1'27.
• New CASA accounts opened: 8.4 lakh; total CASA accounts: 183.0 lakh.
• Digitally active customers reached 64.6 lakh with 22% YoY growth.
• Referral loans disbursed ₹628 Cr in Q1'27, ~50% of FY'26 total.
• UPI ecosystem transactions at 6,826 Cr; Fino's UPI contribution 1.27%.

Financial Performance

• Revenue for Q1'27 at ₹306.9 Cr, down 32% YoY and 10% QoQ.
• Net Revenue ₹131.2 Cr; Net Revenue Margin 42.8%.
• EBITDA ₹43.1 Cr; EBITDA Margin 14.0%.
• PAT (After exceptional item) at -₹13.7 Cr.
• Cost to Income 28.7%.

Capital Structure & Liquidity

• Average Total Deposits: ₹2,772 Cr; Cost of Funds at 1.4%.
• No debt details disclosed; liquidity supported by deposits.

Strategic Priorities & Outlook

• SFB transition on track; LOS & LMS identified, consultant engaged.
• Continue building a low-cost liability franchise with CASA and digital expansion.
• Leverage high-margin, annuity-led liability business to improve profitability.

Risks & Mitigation

• Near-term headwinds impacting revenue; potential for margin improvement.
• Execution risk in SFB transition; ongoing readiness activities as mitigation.

Q1 FY'27 highlights

• Total revenue declined 32% YoY to ₹306.9 crore in Q1 FY'27.
• Net revenue stood at ₹131.2 crore, down 14% YoY and 4% QoQ.
• Net revenue margin expanded to 42.8% in Q1 FY'27.
• EBITDA margin remained at 14.0% in Q1 FY'27.
• Total throughput reached ₹1.11 lakh crore in Q1 FY'27.
• UPI throughput was ₹60.1k crore, up 14% YoY.
• CASA customer base grew 22% YoY to 1.83 crore.
• Average total deposits rose 12% YoY to ₹2,772 crore.
• Renewal income increased 7% YoY to ₹67.5 crore.
• Loan referral disbursals surged to ₹628 crore (214% YoY).
• CMS throughput improved 26% sequentially to ₹18,092 crore.
• Bank processed 94.7 crore transactions worth ₹1.11 lakh crore.

SFB transition and governance

• Significant progress in hiring senior credit professionals and onboarding tech providers for LMS.
• On track to meet required SFB transition conditions.
• RBI in-principle approval to convert to SFB received on 5 December 2025.

Financial snapshot

• Total income for quarter ended June 30, 2026: 30,687 lakhs.
• Net loss after tax: (₹1,372) lakhs.
• Basic and diluted EPS: (₹1.65) per share.
• Capital adequacy ratio: 82.58%.
• ROA (average, not annualised): −0.25%.
• Net worth: 58,006 lakhs.
• Total debts to total assets: 35.75%.
• Total assets: 569,662 lakhs; Total liabilities: 490,183 lakhs.
• Profit before tax: (₹1,372) lakhs.

Segment performance

• Retail Banking revenue: 12,994 lakhs; Treasury: 7,287; Other Banking: 10,404.
• Total segment revenue: 30,687 lakhs.
• Retail pre-tax profit: 7,166 lakhs.
• Treasury pre-tax profit: 4,740 lakhs.
• Other Banking pre-tax loss: (2,482) lakhs.
• Total segment pre-tax: 9,424 lakhs.
• Unallocable expenditure: 10,796 lakhs.
• Overall PBT: (₹1,372) lakhs.

Capital & leadership updates

• Rishi Gupta ceased as MD & CEO on May 21, 2026.
• Anup Agarwal appointed Interim CFO for up to 3 months from July 6, 2026.
• Ketan Merchant appointed Interim CEO for up to 3 months from May 27, 2026 (RBI approved).
• RBI approved extension of Interim CEO tenure on May 25, 2026.
• RBI in-principle approval for transition to Small Finance Bank received December 5, 2025.

Key July 2026 metrics

• Accounts opened in July 2026: 3,27,771, up 9% YoY.
• Renewal income: ₹23.6 Cr, up 5% YoY.
• Average total deposits: ₹2,766 Cr in July 2026, up 12% YoY.
• Digitally active customers: 66.3 Lakh, up 21% YoY.
• FinoPay active customers: 8.9 Lakh, up 34% YoY.
• Throughput: ₹3,074 Cr in July 2026, down 25% YoY.
• B2B UPI P2M throughput not reported for July 2026.
• Disbursals: ₹241 Cr in July 2026, up 304% YoY.
• SFB implementation in progress; RBI timelines to be met.
• Figures are provisional and unaudited.

Resolutions

• Ordinary: Re-appoint Mr. Rishi Gupta as MD and CEO from May 02, 2026 to May 21, 2026; approved.
• Outcome: Passed with requisite majority (98.88% in favour, 1.12% against).
• Promoter group not interested in the agenda.

Meeting Details

• Date and time: August 14, 2026 at 04:00 P.M. IST
• Type/mode: earnings conference call, virtual group discussion with investors and analysts
• Organizer: Go India Advisors
• Purpose: discuss unaudited results for quarter ended June 30, 2026

Participants

• Management to participate in results discussion
• Moderator/host: Go India Advisors
• Company Secretary & Compliance Officer as corporate contact

Additional Notes

• Information regarding the call will be available on the bank's website