Fino Payments Bank has received approval from its board of directors to transition to a small finance bank (SFB), and plans to approach the Reserve Bank of India (RBI) for the transition in the next two months.
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| RBI news update |
This was announced by Fino Payments Bank's MD & CEO Rishi Gupta in an interview with Financial Express.
The transition to an SFB would allow Fino Payments Bank to offer a wider range of financial services to its customers, including loans and credit cards. This would be a significant step forward for the bank, as it would allow it to better serve the needs of its customers and expand its business.
The RBI has been encouraging payments banks to transition to SFBs, as it believes that this would help to improve financial inclusion and provide greater access to financial services to underserved segments of the population.
It will be interesting to see how the RBI responds to Fino Payments Bank's application for an SFB license. If approved, Fino Payments Bank would become the first payments bank to transition to an SFB in India.
Finance Minister Nirmala Sitharaman lauded SBI for successfully launching Indian rupee trading in Sri Lanka yesterday.
Fino Payments Bank on Wednesday reported its Q2 net profit at Rs 19.5 crore. It grew by 42% on a year-on-year (YoY) basis, led by higher net revenue margins. Its overall revenue in Q2 was up 18% yoy at Rs 358.6 crore, while overall performance was up 43% yoy at Rs 86,568 crore.