Fino Payments Bank Reports Strong Deposit Growth and 3.5x Surge in Loan Referral Disbursals for June 2026

What Happened ?

key details

Deposit Franchise Performance:

• Opened approximately 3.13 lakh new deposit accounts during June 2026.
• Total account base expanded to around 1.8 crore accounts.
• Average deposits increased to ₹2,755 crore, reflecting sustained liability growth.
• Renewal income improved by 6% YoY.

Digital Customer Growth:

• Digitally active customers increased to 64.7 lakh, registering 22% YoY growth.
• FinoPay mobile application active users grew 38% YoY to 8.4 lakh, indicating improving customer engagement across digital channels.

Preparing for Small Finance Bank (SFB) Transition:

The bank stated that its loan referral business continues to serve as a pilot platform for its proposed Small Finance Bank transition.

• Loan referral disbursals reached approximately ₹240 crore, a 3.5x increase over the previous year.
• Management believes this demonstrates significant lending potential within its existing customer ecosystem and supports its long-term lending strategy.

Transaction Business:

• Transaction throughput declined 35% YoY to ₹2,830 crore.
• Management attributed the moderation primarily to:
  • Ongoing migration from cash transactions to UPI.
  • Greater focus on higher-quality, high-transaction merchants.
• The bank noted that the rate of decline has moderated compared with previous months.

Note:

• The business update is based on provisional and unaudited operating data for June 2026.

Risk Analysis

Summary:

• While deposit mobilisation and lending referrals remain strong, the bank continues to experience pressure in its transaction business as customer payment behaviour shifts toward digital payment ecosystems.

Key Risks:

• Continued migration to UPI may reduce transaction throughput.
• Growth in lending remains dependent on regulatory progress regarding the proposed Small Finance Bank transition.
• Monthly operating metrics are provisional and subject to revision.
• Sustaining digital customer engagement will remain important for future growth.

Worst Case:

• If transaction volumes continue to decline without adequate growth in lending and deposits, overall operating momentum could weaken despite improvements in customer acquisition.

Risk Level: Medium

Company Commentary

• The bank’s core liability franchise maintained strong growth momentum during June 2026.
• Loan referral business continued to make significant progress, supporting preparations for the proposed Small Finance Bank transition.
• Management stated that the ecosystem-wide shift toward UPI has moderated transaction throughput, although the pace of decline has eased compared with earlier periods.
• The disclosed business performance numbers are provisional and unaudited.