Fino Payments Bank gears up for small finance bank transition, expects sharp jump in profits

Fino Payments Bank is preparing for a major business transition after receiving in-principle approval from the Reserve Bank of India (RBI) to convert into a small finance bank (SFB). Managing Director and CEO Rishi Gupta said the move will allow Fino to enter the lending business for the first time.

Gupta said, “Payments bank cannot do lending… so both from a liability point of view as well as from the lending point of view, it’s a big change for us.” Fino will continue operating as a payments bank until the licence becomes fully operational.

Fino expects lending operations to begin in 12–18 months after restructuring and compliance changes. Gupta said the business is expected to improve profitability as the bank earns lending margins and annuity income.

He said, “The bottom line gro