Check Before You Invest : Fino Payments Bank Ltd

Q: Which industry/sub-sector does Fino Payments Bank Ltd belong to?

Fino Payments Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q: Is Fino Payments Bank Ltd a good quality company?

Fino Payments Bank Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Fino Payments Bank Ltd undervalued or overvalued?

Fino Payments Bank Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 19.19, Historic Median: 30.56. Price to Book, Current: 1.31, Historic Median: 3.70. Price to Sales, Current: 4.06, Historic Median: 18.88. EV to EBITDA, Current: 23.16, Historic Median: 32.23

Q: Is Fino Payments Bank Ltd a good buy now?

Fino Payments Bank Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Total Income growth is 24.94% for FY-2025, which is above its 5-year CAGR of 21.72%, indicating faster growth.

Q: Return on Assets of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Return on Asset is 2.4%, which is below its 5-year historical median of 2.9%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 2.71, Historic Median: 2.4. PPOP (%), Current: 24.14, Historic Median: 33.85. RoA (%), Current: 2.4, Historic Median: 2.9

Q: Return on Equity (ROE) of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Return on Equity is 13.7% for FY-2025, which is in line with its 5-year historical median of 13.7%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 24.14% for FY-2025, which is below its 5-year median(33.85%), indicating decreasing margins.

Q: Net Interest Margin of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.71% for FY-2025, which is above its 5-year median( 2.4%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Fino Payments Bank Ltd return on invested capital (ROIC) is 11.08% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Fino Payments Bank Ltd

BSE: 543386 NSE: FINOPB ISIN: INE02NC01014

| Sector: BFSI | Industry: Bank - Private

Snapshot

Q.1 Which industry/sub-sector does Fino Payments Bank Ltd belong to?

Fino Payments Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q.2 Is Fino Payments Bank Ltd a good quality company?

Fino Payments Bank Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Fino Payments Bank Ltd undervalued or overvalued?

Fino Payments Bank Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	19.19	30.56
Price to Book	1.31	3.70
Price to Sales	4.06	18.88
EV to EBITDA	23.16	32.23

Q.4 Is Fino Payments Bank Ltd a good buy now?

Fino Payments Bank Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Total Income growth is 24.94% for FY-2025, which is above its 5-year CAGR of 21.72%, indicating faster growth.

Q.2 Return on Assets of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Return on Asset is 2.4%, which is below its 5-year historical median of 2.9%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	2.71	2.4
PPOP (%)	24.14	33.85
RoA (%)	2.4	2.9

Q.3 Return on Equity (ROE) of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Return on Equity is 13.7% for FY-2025, which is in line with its 5-year historical median of 13.7%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 24.14% for FY-2025, which is below its 5-year median(33.85%), indicating decreasing margins.

Q.5 Net Interest Margin of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.71% for FY-2025, which is above its 5-year median( 2.4%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Fino Payments Bank Ltd return on invested capital (ROIC) is 11.08% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Total Asset growth is 23.02% for FY-2025, which is below its 5-year CAGR of 46.47%, indicating slower growth.

Q.8 Cost to Income ratio of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 93.8% for FY-2025, is in line with its historical 5-year median of 94.5%, indicating stable cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of Fino Payments Bank Ltd?

Fino Payments Bank Ltd Capital Adequacy ratio (CAR) is 80.45% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Fino Payments Bank Ltd?

Q.1 Promoter shareholding and pledge status of Fino Payments Bank Ltd?

Promoters hold 75.00% of the Fino Payments Bank Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Fino Payments Bank Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Fino Payments Bank Ltd vs Industry Peers?

Fino Payments Bank Ltd AUM CAGR is 46.47%, compared to the 5-year industry median CAGR of 13.65%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Fino Payments Bank Ltd vs industry peers

Fino Payments Bank Ltd profit metrics are in line with the industry median level of 7.55%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	2.71	3.73
PPOP (%)	24.14	17.81
RoA (%)	2.4	1.1

Q.3 Operating efficiency of Fino Payments Bank Ltd vs industry peers?

Fino Payments Bank Ltd Cost to Income (95.7) is above the industry median of (61.3); while the current ROE (13.7) are above than the 5-year average Industry ROE (12.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	2.71	3.73
PPOP (%)	24.14	17.81
RoA (%)	2.4	1.1
Cost to Income (%)	93.8	61.3
ROE (%)	13.7	12.2

Valuation & price assessment

Q.1 Stock return of Fino Payments Bank Ltd over the last decade?

Over the last 3 years, the stock has delivered a CAGR of -15.52% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-15.5%	-50.2%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	19.19	30.56	13.38
Price to Book	1.31	3.70	1.38
Price to Sales	4.06	18.88	1.77
EV to EBITDA	23.16	32.23	7.70

Q.3 Valuation ratios of Fino Payments Bank Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.31 is lower than its historical median of 3.70, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : Fino Payments Bank Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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