Fino Payments Bank posts a second straight quarterly loss as its digital payments arm stays shut

Fino Payments Bank reported a net loss of Rs 20.9 crore for the July to September quarter of FY27, against a net profit of Rs 15.4 crore a year earlier. It is the bank's second loss making quarter in a row: the loss in the June quarter was Rs 13.7 crore. Total income fell 16.6% year on year to Rs 333.6 crore, though it rose 8.7% from the previous quarter, Inc42 and Business Standard reported.

The main drag was fee and commission income, which the bank books as other income and which covers savings and current accounts, micro ATMs, Aadhaar Enabled Payment System transactions, remittances and cash management. It fell about 24% to Rs 259.2 crore. Interest earned rose 24% to Rs 74.5 crore. EBITDA dropped 43% from a year earlier to Rs 35.1 crore. Interim CFO Anup Agarwal blamed margin compression and the depreciation that came with migrating the bank's core banking system.

One business contributed no revenue at all. Inc42 reported that Fino's digital payment services vertical stayed non-operational through the quarter, after operational disruptions earlier in the year, and that the bank plans to relaunch it by Q4 FY27. A year ago that vertical brought in Rs 63.4 crore, or 16% of revenue. Fino still processed 92.8 crore digital transactions worth Rs 64,023 crore in the quarter and had soundboxes deployed at 5,383 merchants.

The bank is also preparing to become a small finance bank, after receiving the RBI's in-principle approval in December 2025, according to BusinessLine. Its loan referral business, which it treats as a pilot for that model, disbursed Rs 762 crore in the quarter, up 286% year on year. Fino says it has hired senior leaders for branch banking, MSME lending and credit risk. Deposits stood at Rs 2,299 crore at the end of September, about 10% higher than a year earlier.