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FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift
Banking, Markets - July 7, 2025

FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift

FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift

FINO Payments Bank, a prominent player in India’s fintech space, has unveiled an ambitious roadmap for FY26 as it aims to achieve a net profit of ₹100 crore. This sharp growth target comes on the back of rising digital adoption, expanding merchant reach, and a strong push towards financial inclusion. The bank’s strategic evolution highlights the growing confidence of fintech institutions in tapping India’s underserved markets through tech-driven solutions.

Riding the Digital Momentum

A key pillar of FINO’s growth plan is its increasing focus on digital transactions. The bank anticipates that around 49% of its transactions in FY26 will be digital, a significant leap from just 21% in the previous year. This reflects the larger industry-wide trend of customers shifting from cash-based dealings to convenient digital platforms.

The bank expects its revenue from digital channels to exceed 25% in the current fiscal. This marks a strategic shift not just in service delivery but also in profitability, as digital transactions typically come with lower operating costs and higher margins. Tools like QR codes, PoS machines, and innovative audio-based payment confirmations are now key enablers in FINO’s ecosystem.

Expanding Reach and Product Portfolio

FINO’s network of merchants has now surpassed 1.9 million across India, forming the backbone of its services. These merchants function as local banking points, allowing the bank to serve customers even in the most remote regions. This widespread reach supports the bank’s hybrid model—combining physical access with digital efficiency.

In terms of offerings, FINO is stepping up innovation. It is developing new digital products like Soundbox devices that deliver voice alerts for transactions—ideal for small shopkeepers in busy or noisy environments. It is also working on offline QR solutions that enable transactions even in areas with poor connectivity.

Moreover, the bank plans to expand its prepaid instruments, digital wallets, and bulk disbursement services. These enhancements aim to increase usage among both customers and merchants, encouraging repeat transactions and improving user stickiness.

Robust Customer Base

As of March 2025, FINO serves over 1.43 crore users, of which 53 lakh are active on digital platforms. This shows a growing customer preference for mobile-based and remote banking services. The company’s strong customer base, particularly in Tier 2 and Tier 3 regions, provides it with a competitive advantage over digital-only players that often struggle to build trust beyond urban centers.

Strong Financial Performance in FY25

FINO ended FY25 on a high note, recording a 30% jump in revenue, rising from ₹150 crore in FY24 to ₹195 crore. Its net profit stood at ₹93 crore, reflecting an annual growth of over 8%. Return on Equity (ROE) and Return on Capital Employed (ROCE) were 13.6% and 6.67%, respectively. These numbers showcase the company’s operational efficiency and its readiness to scale sustainably.

With consistent earnings and improved margins from digital operations, FINO believes reaching ₹100 crore in profit for FY26 is well within reach.

Cost Efficiency and Deposit Growth

The bank has been focusing on maintaining a lean cost structure. Its cost-to-income ratio is targeted around 25%, a mark of financial discipline that boosts long-term sustainability. To further strengthen its foundation, FINO is working on increasing its CASA (Current and Savings Account) base—essential for reducing the cost of funds and enhancing interest income margins.

Looking Ahead: Plans to Become a Small Finance Bank

One of the most significant developments on the horizon is FINO’s plan to transition into a Small Finance Bank (SFB). This change would allow the institution to expand its lending capabilities, offer fixed deposits, and introduce new loan products like housing and MSME financing.

The transformation from a payments bank to an SFB is expected to open doors to a broader customer base and improve revenue streams. More importantly, it would enable FINO to serve its existing network with an extended range of services, strengthening its position in the rural and semi-urban banking ecosystem.

Challenges and Competitive Landscape

Despite its strengths, FINO operates in a highly competitive fintech market. Established players and emerging neobanks are rapidly gaining ground in the digital space. Companies like Jio Payments Bank, Paytm Payments Bank, and app-based challengers like PhonePe and Jupiter are all vying for market share.

However, FINO’s edge lies in its deep physical reach combined with tech-enabled delivery—a combination that many digital-only players cannot yet replicate effectively.

Conclusion

FINO Payments Bank’s profit target of ₹100 crore for FY26 reflects its confidence in the evolving digital landscape and its ability to serve India’s vast underserved population. With a strong merchant network, growing digital revenue, and plans to upgrade to a Small Finance Bank, FINO is well-positioned for the next phase of its journey.

If successful, it will not only mark a milestone for the company but also reinforce the potential of hybrid fintech models in driving financial inclusion and profitability across India.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Healthcare Sector in India Set to Record 11% Rise in Revenue and EBITDA in Q1 FY26

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Zerodha Capital's FY25 Net Profit Soars 78%, Plans to Expand Credit Offerings
Result Updates - May 30, 2025

Zerodha Capital's FY25 Net Profit Soars 78%, Plans to Expand Credit Offerings

Zerodha Capital’s FY25 Net Profit Soars 78%, Plans to Expand Credit Offerings

 

Zerodha’s NBFC subsidiary posts strong profit gains and reveals plans to broaden its business by expanding loan offerings.

Introduction

Zerodha Capital, the non-banking finance subsidiary of India’s leading stockbroking firm Zerodha, has reported a remarkable 78% increase in its net profit for the fiscal year 2024-25. This significant growth underscores the company’s strong financial performance and sets the stage for its strategic expansion into the credit segment.

Financial Performance Overview

For the fiscal year ending March 2025, Zerodha Capital achieved a net profit of ₹12.5 crore, up from ₹7 crore in the previous year. The company’s total revenue doubled to ₹36 crore, reflecting a substantial increase in its lending activities and operational efficiency.
This growth is attributed to the company’s innovative approach in offering loans against securities, providing clients with a seamless and efficient borrowing experience. The rise in both revenue and earnings reflects Zerodha Capital’s successful approach and its skill in leveraging emerging market trends.

Strategic Focus on Credit Expansion

Looking ahead, Zerodha Capital is focusing on scaling up its credit offerings to diversify its revenue streams and strengthen its position in the financial services market. The company plans to introduce term loans in the near future, expanding its product portfolio to cater to a broader range of customer needs.
Currently, Zerodha Capital offers loans against securities, utilizing a wide array of over 1,300 approved securities as collateral. This approach allows clients to leverage their existing investments to secure financing at competitive interest rates, typically around 11.5% per annum. The average loan size stands at approximately ₹6 lakh, with a minimum loan value of ₹25,000.

Market Position and Competitive Advantage

Zerodha Capital’s unique value proposition lies in its ability to provide quick and efficient loan disbursements, often transferring funds to clients’ bank accounts within a single working day. This efficiency is facilitated by the company’s digital platform, which streamlines the loan application and approval processes.
The company’s focus on leveraging technology and its strong brand association with Zerodha, a well-established name in the Indian financial market, provides it with a competitive edge in the lending space. By offering transparent and customer-centric services, Zerodha Capital aims to build long-term relationships with its clients and expand its market share.

Future Outlook

As Zerodha Capital continues to grow, it remains committed to enhancing its product offerings and expanding its reach. The planned introduction of term loans is expected to attract a new segment of borrowers, further diversifying the company’s customer base.
Additionally, Zerodha Capital is exploring partnerships with other financial institutions and fintech companies to broaden its distribution channels and enhance its service delivery. Through continuous innovation and a strong focus on customer needs, Zerodha Capital is well-positioned to emerge as a leading force in India’s lending sector.

Conclusion

Zerodha Capital’s impressive financial performance in FY25 reflects its strong operational capabilities and strategic vision. With plans to expand its credit offerings and leverage technology to improve customer experience, the company is well-positioned for sustained growth in the competitive Indian financial services market.

 

 

The image added is for representation purposes only

NBCC’s Financial Triumph: Q4 Profit Jumps and Revenue Steadily Rises

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Decentro Secures ₹30 Crore to Power Fintech Innovation
Business, Market News - April 15, 2025

India's Fintech Journey: Progress and Future Ahead

India’s Fintech Journey: Progress and Future Ahead

 

Introduction: A Decade of Progress, A Century of Potential

India’s fintech sector has evolved dramatically in the past decade, with digital wallets, UPI, and instant loans transforming how citizens interact with money. Yet, according to MobiKwik cofounder Upasana Taku, the journey is only beginning. In a recent interview, she emphasized that while India has achieved foundational digital infrastructure, only 10% of the population uses multiple financial products. This signals that a vast, untapped opportunity remains to democratize access to savings, insurance, credit, and investments for the broader population.

Digital Payments: The First Frontier of Financial Transformation

Taku highlighted how digital payments became the entry point for many Indians into the formal financial system. The surge in UPI transactions and wallet usage—especially post-demonetization and during the COVID-19 pandemic—laid the groundwork for fintech growth. MobiKwik, once known predominantly for wallet-based payments, has expanded into BNPL (Buy Now, Pay Later), insurance distribution, credit lines, and merchant payments. However, she notes that financial services penetration is still shallow, and multi-product adoption is essential to unlock long-term sectoral value.

A Vision for 10X Growth: Diversification and Depth

Looking ahead, Taku expressed confidence in achieving tenfold growth in the next few years by moving beyond just payments. MobiKwik’s roadmap includes a deeper push into personal finance, including digital lending, wealth management, small-ticket insurance, and embedded finance solutions. As the company scales, the goal is not just user acquisition but increasing wallet share per customer by becoming a one-stop shop for all things finance. In her view, consumer trust, intelligent product bundling, and real-time credit risk models will define the next wave of fintech innovation.

Profitability Over Growth-at-Any-Cost

In a break from the earlier startup mindset that prioritized user growth over profitability, Taku emphasized that MobiKwik is now focused on unit economics and sustainable profitability. As macroeconomic pressures such as inflation and global rate hikes challenge consumer spending, and regulatory tightening by the RBI increases compliance costs, only financially sound companies will thrive. She sees this as an opportunity to build with resilience, as investors now seek innovation, monetization clarity, and disciplined execution.

Regulatory Landscape: Challenge and Catalyst

The RBI has been increasingly active in shaping the fintech space, introducing frameworks around digital lending, data privacy, KYC norms, and account aggregators. While some players view regulations as a barrier, Taku considers them a necessary filter to separate serious fintech builders from opportunistic entrants. She calls for more dialogue between the industry and regulators to balance innovation and consumer protection. Taku notes that India’s success in fintech will depend on an inclusive, transparent, and compliant ecosystem.

Enhancing Access to Financial Products: Inclusion is the Next Key Progress

Taku stressed the need for financial inclusion beyond metro cities, pointing out that Tier 2, 3, and 4 towns still lack access to basic financial products. She believes that language localization, simple interfaces, and AI-driven customer support are crucial to onboarding the following 300 million users. Moreover, partnerships with NBFCs, banks, and local retailers can be powerful enablers to reach India’s underbanked population. She envisions the fusion of financial technology and regional advancements as a driving force behind the breakthroughs of the coming decade.

The Road Ahead: Collaboration, Innovation, and Impact

India asserts that the fintech sector, already among the largest in the world by transaction volume, is entering a more mature and mission-driven phase. She envisions a future where fintech simplifies daily transactions and empowers individuals with economic agency, digital credit history, and access to growth capital. Collaboration with regulators, traditional banks, and technology startups will be key to building a decentralized, secure, and inclusive financial ecosystem. The race is no longer about scale alone—it’s about impact, trust, and transformation.

Conclusion: A Country of a Billion Wallets and Billions of Dreams

India’s fintech journey, while impressive, is still in its adolescence. As Upasana Taku rightly points out, building for Bharat—the broader, diverse, and ambitious population—is the next great challenge and opportunity. MobiKwik and similar companies are leading the way as digital platforms and in promoting financial dignity. The path ahead will require courage, compliance, and creativity, but if done right, India could become the most inclusive fintech ecosystem in the world.

 

 

 

 

 

 

 

 

 

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