Fino Payments Bank Shares Slide Over 8% After RBI Approval for SFB

Fino Payments Bank shares tumbled over 8%, hitting a day low of ₹287.25 at 1:15 PM, after opening at ₹324.65 on the BSE. The fall in Fino Payments Bank shares comes on the heels of Fino becoming the first payments bank in India to receive in-principle approval from the RBI to convert into a Small Finance Bank (SFB).

The approval clears a significant regulatory milestone for Fino, paving the way for it to transition into a full-fledged SFB. Since commencing operations as a payments bank in 2017, Fino will continue to operate under its current model until it receives the final nod and officially begins SFB operations.

What Will Change for Fino Payments Bank?

The conversion represents a major transformation of Fino’s business model. As an SFB, the bank will gain the ability to offer loans, accept unrestricted deposits, and function as a comprehensive banking institution. It will also be allowed to open branches and banking outlets from day one of its SFB operations, marking a new chapter in its growth trajectory.

Also Read: Fino Payments Bank Secures RBI Approval for Small Finance Bank Conversion

Management Take on RBI Approval for SFB

Terming the conversion to SFB as a natural progression, Rishi Gupta, MD & CEO, Fino Payments Bank, said, “The ‘In-principle’ approval is a historic and momentous occasion in Fino’s evolution journey. We are deeply grateful to the regulator (RBI) for reposing faith in Fino’s asset light business model and its robust governance structure. 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. I take this opportunity to thank our investors, customers, employees and partners for their continuous support and patronage, and express my gratitude to our Board Members for their guidance.”

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