Fino Payments Bank Shares Zoom 45% in 5 Days; Know What’s Fueling the Rally


Shares of Fino Payments Bank Ltd have rallied more than 14 per cent to Rs 264 apiece on the BSE in Thursdayโ€™s early trading session. In the last one week, the stock has rallied about 45 per cent.

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 per cent below its issue price of Rs 577.

As per the block deal data on the NSE, Capri Global Holdings Private Limited bought 1.32 million shares representing 1.59% of the total equity of Fino Payments Bank at price of โ‚น228.77 per share via open market deals on Wednesday, November, 23, 2022.

The exchanges sought clarification in respect of significant increase in volume of shares of Fino Payments Bank Limited across Exchanges, in the recent past, to which the bank on Wednesday responded โ€œin this regard, we wish to inform that there is no undisclosed information and/or announcement (including impending announcement) which in our opinion may have a bearing on the Price/Volume behaviour of the Bankโ€™s Scrip. The Bank has made necessary disclosures pursuant to Regulation 30 of the SEBI Regulations, 2015 within stipulated time frame and all such disclosures are in public domain.”

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.

What Do Brokerages Say?

Domestic brokerage ICICI Securities 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.

โ€œEarlier 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.

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.

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