Archive · 6 Dec 2025
Fino Payments Bank Plans Secured Lending Focus
Fino Payments Bank has received permission from the Reserve Bank of India to become a small finance bank.
This means they can now offer loans, which they couldn't do before.
The bank plans to focus on secured loans, like loans against property and gold loans, and will be careful with unsecured loans.
They have a big network of merchants and customers, which will help them start lending.
The bank's profit went down, but its income from interest went up.
Analysts think Fino's entry into lending will be smooth and cost-effective.
The bank's shares went up after the news.
The transition to a small finance bank is expected to take 12–18 months.
Fino Payments Bank received in-principle approval from RBI to convert to a small finance bank.
The bank plans to focus on secured lending, including loans against property, affordable housing, and gold loans.
Unsecured lending will be limited and targeted at existing merchants with small business loans typically in the ₹5-10 lakh range.
Fino's merchant network grew to 2 million, with average deposits rising 36% to ₹2,306 crore during the quarter ended September.
The bank expects to maintain its low-cost structure and leverage its business correspondent network and technology for expansion.
- Who
- Fino Payments Bank
- What
- Received in-principle approval to convert to a small finance bank and plans to focus on secured lending
- When
- Approval granted; final licence pending; transition expected within 12–18 months
- Where
- India
- Why
- To expand financial services, including lending, and leverage its existing merchant network and technological infrastructure
Fino Payments Bank
Analysts
Lending Strategy
Fino Payments Bank
Fino plans to focus on secured lending, particularly loans against property, affordable housing, and gold loans, with limited unsecured lending targeted at existing merchants.
Analysts
Analysts believe Fino's entry into lending will be cost-effective and smooth, leveraging its established merchant network and existing technological infrastructure.
- Approval Status
- In-principle approval from RBI
- Current Licence
- Payments bank
- New Licence
- Small finance bank
- Application Date
- December 2023
- Q2 Net Profit
- ₹15.3 crore (down 27.5%)
- Q2 Net Interest Income
- ₹60.1 crore (up 26%)
- Q2 Total Operating Income
- ₹60.11 crore (up 25.9%)
- Share Price Change
- ₹314.65 (up 3.88%) on BSE
- Merchant Network
- 2 million merchants
- Average Deposits
- ₹2,306 crore (up 36%)
- Non-fund-based Income
- ₹1,500–1,800 crore
- Expected Transition Period
- 12–18 months
Sources
RBI Clears Fino Payments Bank’s Conversion Into Small Finance Bank
RBI gives in-principle nod for Fino Payments Bank to become small finance bank
RBI grants in-principle approval to Fino Payments Bank for conversion to a small finance bank
RBI gives Fino Payments Bank in-principle approval to convert to small finance bank
