Fino Payments Bank MD, CEO Rishi Gupta
Fino Payments Bank, which became the first payments bank to receive an ‘in-principle approval’ to convert to a small finance bank (SFB) on Friday, will sell its corporate business correspondent business (BC) going ahead, MD & CEO Rishi Gupta told businessline . The sale is being done to meet the Reserve Bank of India’s (RBI) SFB licensing guidelines.
“There are a lot of operational things which relate to getting people, technology operations and branches right. Then there are some corporate action at holding company level. We have a corporate BC business, which we can’t do under SFB structure so we will have to hive off. Right now, we intend to sell off this business instead of making it a group entity,” Gupta said, adding that the entity expects to receive final approval from the RBI over 12-18 months.
Through its BC network of around 15,000 touch points, Fino provides services to other partner banks for account opening, cash withdrawal and related services. In H1FY26, this vertical accounted for 8 per cent of the total revenue.
Fino Payments Bank will re-brand itself as Fino SFB post conversion and double its branch network from 120 currently, over the next 2-3 years, and hire 500-600 employees in the initial years of becoming a SFB.
Core business, universal bank
Gupta said that Fino’s ability to raise liabilities is already proven in a way, with low-cost current account and savings account (CASA) deposit base standing at ₹2,300 crore as on Q2FY26.
“We do ₹700 crore deposit mobilisation each year and will continue to build on that because of our wide distribution network,” he said. Fino will be able to source loans from its merchants and focus on selling secured loans like loan against property, gold loan and affordable housing in the initial phase. MSME loans, two-wheeler loans and credit cards can be considered in the later stage, said Gupta, ruling out the possibility of selling microfinance loans.
“We are meeting people to fulfil key roles on credit side for underwriting, credit risk, retail and branch banking, among others,” Gupta said. He added that the entity currently does not require or planning to raise fresh capital, but did not rule out its possibility to aid growth.
When asked whether Fino aspires to become an universal bank, Gupta said: “Why would we not look at universal bank license. It is too pre-mature at this stage, but regulatory guidelines do allow SFBs to convert to universal bank after meeting certain criteria. At an appropriate time, we will look at it. Aspiration is there, but currently there is no activity on that front but whatever we do, it will be done with that purpose,” he said.
Published on December 7, 2025
