Fino Payments Bank Q4 profit drops 70% to ₹7.1 crore despite record deposits
Synopsis
Fino Payments Bank's Q4 FY26 profit collapsed 70% to just ₹7.1 crore — yet the bank simultaneously posted record deposits of ₹2,957 crore and its highest-ever net revenue margin of 40%. The divergence between earnings and operating metrics raises pointed questions about cost pressures and whether the bank's deposit-led growth story can convert into bottom-line recovery.
Key Takeaways
Fino Payments Bank reported a 70.4% year-on-year drop in net profit to ₹7.1 crore in Q4 FY26 , down from ₹24 crore in Q4 FY25.
Net Interest Income (NII) rose 31.5% to ₹35.2 crore , and the bank recorded its highest-ever quarterly net revenue margin of 40% .
Total deposit balance hit an all-time high of ₹2,957 crore on 14 March 2026 ; average deposits grew 20% year-on-year.
Customer base reached 1.75 crore , with 6.9 lakh new accounts added in Q4 FY26.
Full-year FY26 total revenue declined 14% to ₹1,587.9 crore ; total throughput fell 17% in Q4 but digital throughput grew 16% for the full year.
Fino Payments Bank Limited on Wednesday, 29 April 2026 reported a sharp decline in quarterly profitability, with net profit falling 70.4 per cent year-on-year to ₹7.1 crore in Q4 FY26, down from ₹24 crore in the corresponding quarter of the previous financial year. The steep earnings drop came even as the bank posted record deposit balances and its highest-ever quarterly net revenue margin.
Earnings Under Pressure
Despite the headline profit slump, core operating metrics offered a more mixed picture. Net Interest Income (NII) rose 31.5 per cent year-on-year to ₹35.2 crore in Q4 FY26, up from ₹26.8 crore a year ago, according to the bank's regulatory filing. The bank also recorded its highest-ever quarterly net revenue margin of 40 per cent, supported by a rise in CASA contribution to 45 per cent.
Full-Year Revenue Shows Strain
For the full financial year FY26, total revenue stood at ₹1,587.9 crore, marking a 14 per cent decline year-on-year. However, net revenue remained comparatively stable at ₹584.4 crore, as per the regulatory filing. The divergence between total revenue and net revenue suggests that while gross business volumes moderated, the bank managed to protect its margin base — a notable operational achievement amid a challenging environment.
Record Deposits and Customer Growth
On the deposits front, average deposits rose 20 per cent year-on-year to ₹2,535 crore during the quarter. The bank reached its highest-ever total deposit balance of ₹2,957 crore on 14 March 2026. CASA renewal income also hit a record ₹62.2 crore in Q4 FY26, up 12 per cent from a year ago. The customer base expanded to 1.75 crore, with approximately 6.9 lakh new accounts added during the quarter — including around 3.2 lakh in March alone, according to its exchange filing.
Throughput Moderation a Concern
Business activity, however, showed signs of moderation. Total throughput for the quarter declined 17 per cent year-on-year to ₹1,07,798 crore, while digital throughput fell 13 per cent to ₹65,269 crore. For the full year, total throughput remained broadly flat at ₹4,64,047 crore, though digital throughput grew 16 per cent to ₹2,62,009 crore — signalling a structural shift toward digital channels even as overall volumes stalled. This is consistent with a broader industry pattern where payments banks face margin compression as competitive intensity in digital transactions increases.
What to Watch
The sharp profit decline, even against improving NII and margin metrics, points to elevated costs or one-time provisioning that the bank has not yet fully detailed publicly. Analysts will closely track whether the deposit momentum and CASA improvement translate into sustained earnings recovery in Q1 FY27, and whether throughput volumes rebound as macroeconomic conditions stabilise.
Point of View
But payments banks operate on razor-thin spreads, and a 17% throughput decline in a quarter is a serious volume signal. The digital throughput growth for the full year is encouraging, but if average transaction values are falling as volumes migrate to low-ticket digital payments, margin pressure will persist regardless of CASA improvement. The bank's ability to convert its expanding 1.75-crore customer base into higher-value product relationships will determine whether FY27 marks a recovery or a structural reset.
NationPress
1 May 2026
Frequently Asked Questions
What was Fino Payments Bank's net profit in Q4 FY26?
Fino Payments Bank reported a net profit of ₹7.1 crore in Q4 FY26, a decline of 70.4 per cent year-on-year from ₹24 crore in Q4 FY25. The drop came despite improvements in net interest income and deposit balances.
Why did Fino Payments Bank's profit fall so sharply?
The bank has not publicly detailed the specific drivers of the 70.4% profit decline in Q4 FY26. The fall occurred even as NII rose 31.5% and deposits hit record levels, suggesting elevated operating costs or provisioning may be responsible.
What were Fino Payments Bank's deposit figures for Q4 FY26?
Average deposits rose 20 per cent year-on-year to ₹2,535 crore during Q4 FY26, and the bank recorded its highest-ever total deposit balance of ₹2,957 crore on 14 March 2026.
How did Fino Payments Bank's full-year FY26 revenue perform?
Total revenue for FY26 declined 14 per cent year-on-year to ₹1,587.9 crore, while net revenue remained stable at ₹584.4 crore, according to the bank's regulatory filing.
How is Fino Payments Bank's customer base growing?
The bank's customer base expanded to 1.75 crore by the end of Q4 FY26, with approximately 6.9 lakh new accounts added during the quarter, including around 3.2 lakh in March 2026 alone.
