Fino to sell its corporate BC business, aspires to become universal bank eventually: CEO

Fino Payments Bank MD, CEO Rishi Gupta

Fino Payments Bank, the first payments bank to secure an ‘in-principle approval’ to transition into a small finance bank (SFB), plans to divest its corporate business correspondent (BC) operations, according to Managing Director and CEO Rishi Gupta. The strategic move aligns with Reserve Bank of India (RBI) licensing guidelines for SFBs.

“Operational priorities include staffing, technology, and branch expansion. At the holding company level, corporate actions such as divesting our corporate BC business are necessary, as SFBs cannot retain this structure. Instead of transferring it to a group entity, we intend to sell this business outright,” Gupta stated. The bank anticipates receiving final RBI approval within 12–18 months.

Fino’s BC network spans approximately 15,000 touchpoints, offering partner banks services like account opening and cash withdrawals. This segment contributed 8% of total revenue during the first half of fiscal year 2026.

Following its conversion, Fino Payments Bank will rebrand as Fino SFB and expand its branch network from 120 to 240 locations over the next 2–3 years. The institution also aims to hire 500–600 employees during the SFB transition phase.

Core Business Strategy

Gupta emphasized Fino’s proven ability to raise liabilities, noting its current account and savings account (CASA) deposits reached ₹2,300 crore by Q2 FY26. “With annual deposit mobilization of ₹700 crore and a robust distribution network, we will strengthen our funding base,” he added. The SFB will initially focus on secured lending products such as loans against property, gold loans, and affordable housing, while exploring MSME loans, two-wheeler financing, and credit cards at a later stage. Microfinance lending remains excluded from their plans.

Though Fino does not currently require fresh capital, Gupta acknowledged potential future fundraising to support growth. Regarding long-term ambitions, he confirmed aspirations for a universal banking license but clarified no immediate plans are underway. “Regulatory pathways allow SFBs to convert into universal banks after meeting specific criteria. We’ll evaluate this option at an appropriate time,” he concluded.

Published on December 7, 2025