Shares of Fino Payments Bank Ltd are up more than 14 per cent during Thursday’s early trading session to Rs 264 apiece on the BSE. The stock is up about 45 percent in the past week.
Fino Payments Bank made its stock market debut on November 12, 2021. Despite the recent surge in the past week, the counter is 55 percent below the issue price of Rs 577.
According to the block deal data on the NSE, Capri Global Holdings Private Limited purchased 1.32 million shares representing 1.59% of Fino Payments Bank’s total equity at a price of ₹228.77 per share through open market deals on Wednesday, November 23, 2022.
The exchanges sought clarification regarding the significant increase in the volume of shares of Fino Payments Bank Limited in the recent past, to which the bank responded on Wednesday: “In this regard, we would like to inform you that there is no classified information and/or announcement (including impending announcement) that we believe may affect the Price/Volume behavior of the Bank’s Scrip. The Bank has made the necessary disclosures under Regulation 30 of the 2015 SEBI Regulations within the stipulated time frame and all such disclosures are in the public domain.”
For the quarter ended 30 September 2022, the lender reported a 75% increase in net profit to Rs 13.8 crore, while revenues for the lender rose 25% to Rs 303.33 crore, while EBITDA rose 71% up to Rs 30.5 crore.
The number of sellers rose 51% year-on-year to 12.25 lakh in Q2 FY23, while 7.6 lakh new bank accounts were opened in the quarter. The bank facilitated transactions worth Rs 60,552 crore during the given period.
According to some media reports, the lender has begun internal discussions to convert the lender into a small financial bank (SFB) and will approach the banking regulator once all approvals are obtained.
What do brokers say?
Domestic brokerage ICICI Securities has a buy rating on Fino Payments Bank with a target price of Rs 325, suggesting further steam in the counter. It believes that sustainability is key for the lender.
“Past investments in digital platforms are already starting to yield positive results, as evidenced by digital throughput now contributing 17% of total throughput as of September 2022,” the brokerage said.
Fino Payments Bank, is a wholly owned subsidiary of Fino PayTech, engaged in providing business and banking technology platform based solutions and services related to financial inclusion.
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