The private lender’s stock, which hit the upper circuit on Wednesday, extended gains to rise another 14% on Thursday to Rs 262.5. In the last one week, the stock has rallied about 45%.
Fino Payments Bank made its stock market debut on November 12, 2021. Despite the recent rise in the last one week, the counter is trading 55% below its issue price of Rs 577.
However, the stock has been in buzz for multiple reasons, including a possible conversion into a small finance bank, fund actions and strong performance in the September 2022 quarter.
On Wednesday, Global fund Capri Global Holdings picked a 1.58% stake or 13.19 lakh shares in Fino Payments Bank via open market transactions. Those shares were bought at an average price of Rs 228.77 apiece.
For the quarter ended September 30, 2022, the lender reported a 75% rise in the net profit at Rs 13.8 crore, whereas revenue for the lender rose 25% to Rs 303.33 crore, while its EBITDA was up 71% at Rs 30.5 crore.
Merchant count jumped 51% YoY to 12.25 lakh in Q2 FY23 while 7.6 lakh new bank accounts were opened during the quarter. The bank facilitated transactions worth Rs 60,552 crore during the given period.
According to some media reports, the lender has started internal discussions for converting the lender into a small finance bank (SFB) and will approach the banking regulator once all approvals are in place.
has a buy rating on Fino Payments Bank with a target price of Rs 325, suggesting there is more steam left in the counter. It believes that sustainability is key for the lender.
“Earlier investments towards digital platforms have already started yielding positive results as reflected in digital throughput now contributing 17% to total throughput as of September 2022,” the brokerage said.
It, however, said that increasing competition could result in higher merchant payouts, and faster adoption of UPI payments via feature-phone could impact remittance volumes.
Fino Payments Bank, is a wholly-owned subsidiary of Fino PayTech, which is engaged in providing business and banking technology platform-based solutions and services related to financial inclusion.
The Mumbai-based private lender backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and
among others, operates on an asset-light business model.
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