Skip to main content

Digital Payment Surge Aids Fino's Second Quarter In Black

 


When the big boys of banking were hobbled by a lending moratorium, ICICI Group- and Blackstone-backed Fino Payments Bank recorded its first run of profits in consecutive quarters, riding the surge in digital transactions during the lockdown.

Fino expects to complete Rs 60,000 crore worth of transactions in the first half of FY21, up 36% from Rs 44 000 crore in the same period last fiscal. Transaction volumes have surpassed pre-Covid levels, largely due to cash withdrawals in rural areas.

As a result, the company posted a net profit for the second consecutive quarter in the three months to June of Rs 1.9 crore from a net loss of Rs 10.9 crore a year ago. March 2020 was the first time it posted a net profit of Rs 1.3 crore.

"We have been beneficiaries of a surge in transactions during and post lockdown as banking services have been more localised and people in rural areas have accessed our network to access government cash transfers," said CEO Rishi Gupta.

In the past one year, Fino has doubled its customer touchpoints to 2.76 lakhs. These include neighbourhood kirana shops, mobile recharge outlets and also BPCL petrol pumps. Gupta said the bank has added more than 16,000 merchants per month since April.

As a result of this expansion Fino Payments Bank expects to maintain its profitability this year and hopes to achieve a return on equity of 15% by March 2021 from a negative number in March 2020.

"There is enough opportunity in India with a potential 500 million bankable population from rural areas. We expect to continue to growth and make profits. The long term plan is to ultimately apply for a small finance bank license," Gupta said.

Converting to a small finance bank will give Fino the opportunity to lend, something a payment cannot do now. It will also allow it to shed the Rs 1 lakh cap per deposit account imposed on such lenders.

The central bank allows payments banks to apply for a small bank license five years after starting operations. For Fino that date comes in July 2022.

Currently, ICICI Group has a 20% stake in Fino Paytech, the holding company of the bank, state owned oil marketing company BPCL 21% and Blackstone 13.5% stake.


Sandip Ginodia , CEO

 

ALTIUS INVESTECH PVT LTD

 

We deal in over 60 unlisted companies with 15 years of experience 

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Labels:

Comments

Post a Comment

Please leave your name and email id along with the comment .
Get the updates from this blog direct to your inbox . Fill in your email id on the home page.

Popular posts from this blog

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

  JioMart , Reliance's online-to-offline commerce  platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went   live in 200 cities across India, is currently processing an average of  500,000 orders per day. " We can go even higher on peak days",  Jio Platforms CEO   Kiran Thomas  revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of  kiranas  and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials."  "Customers are transacting seamlessly on JioMart and the  conversational nature of the service  enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated th...
Post a Comment
Read more

Zomato, Swiggy score 1/10 on working conditions for their workers – ET Retail

Some of India's biggest startups have ranked near the bottom when it comes to  working conditions  for their gig  workers , according to a report released Wednesday. While  Swiggy ,  Zomato  and Uber India scored 1/10, Urban Company and Flipkart’s logistics arm EKart scored the highest 8/10 and 7/10, respectively, ‘ Fairwork India Ratings  2020: Labour Standards in the Platform Economy’  showed . The report assessed the companies on five principles: fair play, fair conditions, fair contracts, fair management, and fair representation. Deepinder Goyal, chief executive officer of Zomato Media Pvt. Ltd., acknowledged the ratings on Twitter. “Zomato ranked at the bottom of 2020 Fairwork India scores. We knew we had things to work on, but we didn’t know that there is so much room for improvement.” The company takes full responsibility and “will leave no stone unturned to perform better in the rankings next year,” he added. Zomato received a 4/10 in ...
Post a Comment
Read more

Times Internet posts 24% revenue jump to Rs 1,625 Cr in FY20

  Times Internet has posted a 24% jump in its annual revenue in the financial year ending March, recording Rs 1,625 crore in revenue in FY20. In its annual report, the company  said the revenue growth has been adjusted for seasonality of cricket events. In FY19, it had posted revenues of $196 million. The company has registered a surge across its revenue streams i.e. advertising revenue, subscribers, transaction revenue and gross merchandise value (GMV) in the last fiscal year. While advertising revenue grew 22% with faster growth in music and video, overall subscribers to Times Prime grew 62%.  Times Internet’s annualized GMV in transacting businesses grew 68% with a 75% jump in net revenues, said the company in its annual report. Its subscription and transactional businesses include Times Prime, Gaana Plus, TOI+, ET Prime, and Gourmet Passport.  Times Prime also crossed 2 million subscribers last year. “We broadened our media strategy beyond news, and we focused on...
Post a Comment
Read more