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New Delhi. Fino Payments Bank Limited received a big gift from the Reserve Bank of India (RBI) on Friday (December 5). Actually, RBI has given principal approval to Fino Payments Bank to become a small finance bank. This is a positive news for the company. In such a situation, action can be seen in the shares of Fino Payments Bank included in BSE Smallcap on December 8.
This is the first payments bank which has received permission to convert into a small finance bank. This bank had applied for small finance bank license in October-December 2023. The operation of the bank started in 2017.
The bank will get this benefit
After the new changes, the bank will not be limited to just the payments bank model, but will now be able to provide more comprehensive banking services. After getting the approval from RBI, Fino Payments Bank is preparing to launch three new lending products, which include small loans of less than Rs 50 thousand and secured loans for MSMEs.
Fino Payments Bank’s profit fell by more than 27%
Fino Payments Bank’s profit had fallen by more than 27% in the second quarter, but the good news was that net interest income had increased by 43% on a year-on-year basis. This indicates that the core operation of the bank is getting stronger and moving to the small finance bank model can open new avenues of earning for it.
Will become the 12th small finance bank
After getting approval from the Central Bank, Fino Payments Bank has now moved towards joining the list of small finance banks of the country. Once the approval process is completed, it will become the 12th small finance bank of the country. Currently, this category includes AU SFB, Equitas SFB, Suryodaya SFB, Utkarsh SFB, Jana SFB, Unity SFB, Capital SFB, Isaf SFB, Ujjivan SFB, Shivalik SFB and Slice SFB.
