The Reserve Bank of India has granted in-principle approval for Fino Payments Bank to transition into a small finance bank, marking a first for the country’s payments bank sector.
This transition positions Fino as the first payments bank to secure a small finance bank licence in India.
The move will allow Fino to offer lending services, which are currently restricted under its payments bank licence, though the final approval is still awaited.
Fino’s shift to a small finance bank is expected to broaden its financial services offering, enabling the company to expand into loans while continuing its payments and deposit services.
Rishi Gupta, MD & CEO, Fino Payments Bank, said, “The approval is a testament to our consistent performance, ability to take technology-led banking to the masses, promote digital payments and adherence to compliance and regulatory guidelines”
It provides Fino, an opportunity to realise its growth potential by expanding product suite, engaging with a wider customer segment, foray into lending and building a strong liability franchise thereby creating significant value for all stakeholders, he added.
Ahead of the announcement, shares of Fino Payments Bank Ltd closed at ₹313, up ₹9.50 or 3.13% on the NSE.
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Earlier, the bank reported mixed Q2 results for the quarter ended September 2025. Net profit fell 27.4% to ₹5 crore from ₹21 crore a year ago, while net interest income rose 43.1% to ₹32.5 crore. Total operating income increased 25.9% to ₹60.11 crore, compared with ₹47.75 crore in the same quarter last year, reflecting growth in its core payments and deposits business.
The in-principle approval combined with its improved operating income could give Fino a platform to scale lending operations, complementing its existing payments infrastructure.
First Published: Dec 5, 2025 6:41 PM IST
