Fino Payments Bank CEO Rishi Gupta: Profitability Remains Key as SFB, Differentiated Approach

• Fino Payments Bank CEO Rishi Gupta asserts the bank will not deviate from its profitability agenda despite converting to a Small Finance Bank (SFB), addressing investor concerns.
• Gupta highlights Fino's differentiated SFB model, leveraging its extensive distribution network, advanced technology (Finacle platform), and digital mindset with a large UPI customer base.
• The bank boasts a low cost of funds (2%, projected 3.5-4%) compared to other SFBs (7.5-8.5%) and a strong existing liability base of Rs 3,000 crore.
• Fino plans to focus on secured loans (70-80% of portfolio) and utilize its existing customer and merchant ecosystem for lending, aiming for an Rs 8,000-10,000 crore loan book in 3-4 years.
• The collapse of the holding company structure is on hold due to RBI's 5-year 40% promoter shareholding rule, but no investor stake reduction is required, and capital raise is not immediately needed.

Why It Matters: Fino Payments Bank CEO Rishi Gupta assures a profit-centric, differentiated SFB model, leveraging unique strengths.