Fino Paytech — the holding company of Fino Payments Bank — is planning to raise ₹200 crore from a clutch of domestic and foreign investors by the end of the financial year, said Rishi Gupta, MD and CEO, Fino Payments Bank, in an interaction.
The funds will be required to support the growth of the payments bank as well as the non-banking finance arm (NBFC) of Fino. Fino Paytech had raised ₹700 crore so far, including ₹400 crore for the bank.
The bank, which started business in July this year, had seen its operations stabilising with each of its branches adding 10-15 accounts everyday. It had 422 branches in 12 States like Maharashtra, Madhya Pradesh, Uttar Pradesh and Bihar, among others. It planned to add 200 branches in 2018.
“Our operations have stabilised in the last few months as we have seen increase in acceptability among customers,” said Mr. Gupta adding they were doubling the current and savings account deposits every month.
The bank was focusing on the mass market where households had incomes of between ₹2 lakh and ₹6 lakh a year. “We have seen transaction volumes have gone up three times in October as compared to what it was when we started,” he said. The bank clocked 4-5 million transactions in October.
Digital transactions
“We have also seen increasing acceptance of digital mode of transaction.
[As much as] 15% of the customers are using point-of-sale terminals for transactions and 15% of the customers have already downloaded the app [mobile application],” Mr. Gupta said. He was confident that within three years, the bank would turn profitable.
