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Fino Paytech is a business and banking technology platform combined with extensive services delivery channel. Fino Payments Bank serves the country’s banking needs for over a decade. Fino Paytech’s vision is to fulfill every financial service by providing banking technology platform combined with an extensive services delivery channel. Fino Paytech is an institutional investor-driven company owned by international and Indian investors. The company has emerged as a, innovator, implementer and thought leader of technology solutions for government entities,institutions like banks, micro-finance institutions,  and insurance companies. As an alternate banking channel, Fino Paytech enables seamless end-to-end customer sourcing and servicing.

Fino Paytech was incorporated in july 13, 2006 with Headquarters In Mumbai. FinoPaytech is the first payments bank to go live with 410 branches and more than 25,000 banking points on day one.

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Board of Directors:

Particulars Designation
Mr. Ashok Kini Non-executive Chairman & Independent Director
Dr. Anjana Grewal Independent Director
Mr. Amit Jain Nominee Director of Blackstone
Mr. Alok Gupta Nominee Director of Hav 3 Holdings (Mauritius) Ltd
Mr. Ramakrishna Gupta Nominee Director of Bharat Petroleum Corporation Limited
Mr. Sudeep Gupta Whole-time Director
Mr. Rishi Daultani Chief Financial Officer

History:

  • 2006 – Setup as a payments technology company.
  • 2007 – Financial Business became the core business.
  • 2008 – Launched various Direct Benefit Transfer (DBT) Services.
  • 2011 – Initiated its Lending Business
  • 2014 – Launched Domestic Money Transfer Services
  • 2015 – Forayed into retail business through Fino Money Mart
  • 2017 – Launched Fino Payments Bank

Product and Services they Offers:

Savings Account, Current Account, BPay (Mobile banking and Wallet App), Loans and Insurance.

Strengths

  • Adequate capitalisation : Fino  Paytech’s subsidiary Fino Finance’s networth and adjusted gearing were Rs 86 crore and 5.4 times, respectively, as on March 31, 2018. Rs 75 crore of additional capital was infused in fiscal 2018. Further, capital of Rs 75-100 crore is likely to be infused in fiscal 2019 to support the company’s medium term growth plans. Fino Finance will remain adequately capitalised over the medium term supported by regular equity infusion from its parent.
  • Strategic importance to, and expectation of strong support from Fino Paytech : Fino Finance will continue to remain integral to Fino PayTech and is expected to receive financial, managerial, and operational support from the parent on an ongoing basis and in case of distress. Fino Finance is the only group company that offers loan products and is, therefore, strategically important to Fino PayTech – as indicated by the presence of several common directors on the board and a common senior management. Further, sharing the same brand name emphasizes on the continued association of Fino PayTech with Fino Finance.
  • Geographically diversified operations : Fino Finance is one of the diversified NBFC operating as a microfinance institution (NBFC-MFIs) among peers, with operations in 5 states and 79 districts; no state or district accounted for more than 30% or 7%, respectively, of its loan assets as of March 2018.

Challenges

  • Average albeit improving asset quality : Fino Paytech performance was adversely impacted in the aftermath of demonetisation because of local socio-political issues in major operating states, namely, Maharashtra, Madhya Pradesh, and Uttar Pradesh. Issues have settled down in most of the districts and overall collection efficiency has improved to~95%, portfolio performance in Vidarbha region of Maharashtra and adjoining districts of Madhya Pradesh continue to remain weak. Portfolio of ~Rs 60 crore was written-off in fiscal 2018, largely from Vidarbha region and bordering districts of Madhya Pradesh. Through strong focus on collections and recovery Delinquencies in other regions have also been brought under control resulting in an improvement in 30 dpd to 5.2% as on March 31, 2018 from 33.2% as on March 31, 2017. Portfolio performance is average as reflected in its 30 dpd and 90 dpd of 5.2% and 2.9%, respectively, as on March 31, 2018
  • Modest earnings profile : Profitability is modest as reflected in a net loss of Rs 42 crore for fiscal 2018. Profitability was adversely impacted on account of write-off of ~Rs 60 crore due to asset quality issues faced by the company in three-out of four major operating states in the aftermath of demonetisation. Moreover, operating expenses are high as the company has deployed technology till the ground level to ensure better control over operations. Profitability though is likely to improve considerably for fiscal 2019 on account of lower provisioning costs and improvement in operating expense ratio with increase in scale and improvement in operating efficiency.
  • Susceptibility to risks inherent in the microfinance business : Fino Finance lends to the weaker and poor sections of the society so therefore it will remain exposed to local level socio political and legislative issues associated with the sector.

Acheivements:

2016 – Skoch New Economy Awards

2016- SABRE Award South Asia

2013 – TA Leadership League Awards

2013 – CFO 100 Roll of Honour Award

2012 – FILA

2011 – BloombergUTV CXO Awards

Financial Parameters:

Particulars 2018 2017
Revenue (Cr.) 547.39 376.94
PBT (Cr.) (53.95) (176.05)
PAT (Cr.) (73.32) (167.20)
EPS (₹) (5.75) (13.26)
Book Value 29.30 34.24
Face Value 10 10

Shareholding Pattern:

Particulars %
Bharat Petroleum Corporation Limited 28.78
ICICI Prudential Life Insurance Company Limited 11.47
Blackstone GPV Capital Partners (Mauritius) VI-B FDI Limited 7.60
HAV 3 Holdings (Mauritius) Limited 7.55
International Finance Corporation 6.65
ICICI Bank Limited 5.82
ICICI Lombard General Insurance Company Limited 5.35
Intel Capital Corporation 4.49
Exide Life Insurance Company Limited 2.87
Life Insurance Corporation of India 2.28
Indian Bank 2.28
Union Bank of India 2.28
Corporation Bank 2.28
Others (Individuals and other Entities) 10.3

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