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Fino Payments Bank Slips Into Red, Reports ₹14 Cr Loss In Q1

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Fino Payments Bank Slips Into Red, Reports ₹14 Cr Loss In Q1

Fino Payments Bank slipped into the red in the Q1 FY27, posting a net loss of ₹13.7 Cr against a profit of ₹17.8 Cr in the year-ago quarter. Sequentially, the bank reported a profit of ₹7.1 Cr in the March quarter.

Fino Payments Bank’s total income declined 32.3% to ₹306.9 Cr in Q1 FY27 from ₹453.5 Cr in the corresponding quarter last year. On a QoQ basis, total income fell 9.7% from ₹340 Cr.

The decline was primarily driven by a fall in other income, which includes fees and commissions from current account and savings accounts (CASA), micro-ATM and AePS transactions, domestic remittances, debit cards, third-party products, business correspondent banking, digital payments, and cash management services.

Other income declined 40.2% YoY to ₹234.6 Cr during the quarter. However, interest income increased 18.4% to ₹72.2 Cr from ₹61 Cr in Q1 FY26. The payments bank’s total expenditure, excluding provisions and contingencies, fell 25.2% to ₹320.6 Cr from ₹428.8 Cr in the year-ago period.

“Decline in revenue and profitability is primarily on account of recalibration of Digital Payments Services – B2B UPI P2M vertical and cash driven transaction business,” Fino said.

In the quarter, digital payment services remained non-operational due to “strategic recalibration”. The company registerd a revenue of ₹50 lakh from the service in the quarter, down 99% YoY.

It is expected to relaunch the services by Q4 FY27. Important to note that 23% of Fino’s total revenue in the year-ago quarter was driven by its digital payments services.

The company said that UPI continued to impact transaction business (Remittance, MATM & AePS), reporting a 50% YoY decline in revenue and 44% decrease in throughput.


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