Fino Payments Bank September Update: Accounts opened fall 17%; average deposits rise 13%

Fino Payments Bank reported a mixed performance for September, with a notable decline in new account openings. The bank saw a 17% drop in the number of new accounts added during the month. However, this was offset by a 13% rise in its average total deposits, which stood at ₹2,794 crore. The company also reported strong growth in its loan referral business, which surged 223% year-on-year to ₹278 crore. This indicates that while customer acquisition is slowing, the bank is successfully deepening the relationship with its existing deposit base.

For investors, the rise in deposits is a positive sign, as it strengthens the bank's core funding base. The significant jump in loan referrals suggests that the bank is effectively monetizing its customer base, which could boost future fee income. However, the drop in new account openings is a concern, as it points to challenges in acquiring fresh users in a competitive market. The company also saw a 10% decline in its transaction business throughput, which needs to be monitored closely.

Moving forward, investors should watch the bank's ability to stabilize new account additions. The focus will likely be on how Fino leverages its growing deposit base to drive loan disbursements and other fee-based services. The decline in transaction throughput could also impact overall revenue, so management’s strategy to reverse this trend will be crucial for the stock's performance in the coming quarters.