Fino Payments Bank Reports ₹13.7 Crore Loss in Q1 FY27

Fino Payments Bank slipped into a net loss of ₹13.7 crore in the first quarter of FY27, a sharp decline from a profit of ₹17.8 crore in the corresponding quarter of the previous year. The bank had registered a profit of ₹7.1 crore in the preceding quarter.

Total income for the bank saw a year-on-year decrease of 32.3%, amounting to ₹306.9 crore, down from ₹453.5 crore in Q1 FY26. Sequentially, total income fell by 9.7%. EBITDA also experienced a decline, dropping 30% year-on-year and 23% quarter-on-quarter to ₹43.1 crore.

The downturn in revenue was primarily attributed to a fall in 'other income,' which encompasses fees and commissions from various services including current and savings accounts (CASA), micro-ATM and AePS transactions, and domestic remittances. While interest income saw an increase of 18.4%, it was insufficient to offset the decline in other income streams.

Fino Payments Bank stated that the recalibration of its digital payment services, particularly the B2B UPI P2M vertical, and its cash-driven transaction business led to the decline in revenue and profitability. These digital services were temporarily non-operational during the quarter due to strategic adjustments and are expected to relaunch by Q4 FY27. These services previously contributed significantly to the bank's revenue.

The bank is also undergoing leadership changes and is focused on its transition towards becoming a small finance bank. The interim CEO has emphasized a strategic shift towards retail business and enhancing low-cost liabilities through customer acquisition and lending initiatives.