Shares of Fino Payments Bank gained strongly in Wednesday's trade following the release of a strong set of numbers for the March quarter. The digital payments bank on Tuesday reported a 25% YoY rise in its consolidated net profit to ₹22.08 crore.
The bank had posted a net profit of ₹19 crore in the preceding quarter and ₹18 crore in the March quarter of FY22.
Its total income increased to ₹323.43 crore, up from ₹285.29 crore in the year-ago period and ₹314.10 crore in Q3 FY23.
The bank's net profit for the financial year 2022-2023 has increased significantly, reaching ₹65.08 crore, which is a 52.3% jump from the previous year's ₹42.74 crore. The revenue for the fiscal year ending in March 2023 has also seen a significant increase, reaching ₹1,229.9 crore, which is a 21.9% YoY increase from ₹1,008.9 crore in FY22.
During the March quarter, the bank opened 8.3 lakh new accounts, up 23.7% YoY. Overall, in FY23, the bank opened 29.7 lakh new accounts, reflecting a YoY growth of 45% and taking the total number of accounts to 75.2 lakhs.
As of March-end 2023, Fino Payments Bank witnessed an impressive 66% YoY rise in total deposits, which stood at ₹1,200 crore compared to ₹724 crore in the same period last year.
Commenting on the Q4FY23 performance, Rishi Gupta, CEO & Managing Director, said, “We performed remarkably well this quarter; despite the existence of macroeconomic challenges, our profitability clearly demonstrates our steady progress.”
“CASA and CMS continue to outperform our expectations, and we are very confident of this momentum to continue. This year, we also enhanced on our digital groundwork, the digital throughput gained traction and increased from 16% to nearly 23% between Q1 FY23 and Q4 FY23," he said.
"With this, our objective is to establish ourselves as a reliable financial solutions provider for all our customers and to deliver consistent, long-term returns to our shareholders," he added.
Following the development, the stock got off to a great start in Wednesday's trade at ₹222 apiece, and continued to surge in early trade to hit an intraday high of ₹232.40, an increase of 4.70%. But, the stock has erased those early gains and is currently trading at ₹222.80, up by 2.35%.
The stock made a weak market debut on November 12, 2021, at ₹548 apiece, compared to the issue price of ₹577. On the first day, the stock closed 5.5% lower than the IPO price. At current levels, the stock is down 61% from its issue price.
Fino Payments Bank is a subsidiary of Fino Paytech Limited, which is backed by marquee investors like Bharat Petroleum, ICICI Group, Blackstone, IFC, Intel, and LIC, among others. The bank provides a range of banking and financial services to its customers through its digital platforms and physical branches.
02 analysts polled by MintGenie on an average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.