Fino Payments Bank Limited

Rishi Gupta

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Rishi Gupta

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Rishi Gupta

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Rishi Gupta

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Ketan Merchant

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Ketan Merchant

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Ketan Merchant

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Ketan Merchant

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Rishi Gupta

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Rishi Gupta

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Overall, we seem to be confident of our business and however we will also be cautious towards our rising cost.

— Ketan Merchant

Q

Thank you Diksha. Good morning and good afternoon to all analyst and investor who have joined us on the call today. Thank you for taking the time out to attend the Fino Payments Bank Quarter 4 FY22 Earnings Conference Call. Our growth trajectory continues and has been the trend over the last two years of profitability. Q4FY22 has been our best our quarters and like other financial years, FY22 was the best financial year ever for Fino. However, there were few special achievements for Fino Payments Bank in this financial year and that I would like to make special mention of. Our intent in curren

Ketan Merchant

Thank you Rishi. Ladies and gentlemen good morning and good afternoon to all of you wherever you are. Let me begin first by congratulating all our teams on a remarkable land mark of crossing Rs.1,000 crore revenue. When we started this journey we had our ambitions, but the way the growth has essentially happened on a steady basis is something that all of us are proud. We have several underlying contributors who have piloted this achievement for us to begin with our merchants, our teams and our loyal customers. With this, I directly come to the barometers and the numbers which you all should ta

Q

I have two questions first is on the competition so recently we have heard about one of the payment banks at least giving very aggressive targets about how they are going to grow in the country etcetera. So, if you can talk about that from your perspective and secondly on the international remittance business. So, I wanted to understand that since a larger part of your geographical expanse is more towards West to probably Central to North India, do you think for international remittance you may have to expand to newer geographies from where people mostly migrate abroad for work, so just wanted

Rishi Gupta

On the payments bank competition, what we are hearing is from other payment bank as well. See I think the growth of payments bank has been quite phenomenal in the last couple of years and the payments banks which you are referring to is already a Telco led payments bank. So, they have lot of customers who are already on to their platform somewhere around maybe 25 to 30 crore customers who are already on the Telco platform. So, from a competition point of view we have been with them facing competition for the last two years. In fact lot of products which we offer like CMS, CASA, remittances we

Q

So, just two broad question on this strategy side let us say we are embarking this journey of building a digital platform, but in that case let us say the existing merchant network what we have as on date of around 10 lakh merchants. So, incrementally how one should look at the mix of let us say a Phygital work is digital because I strongly believe that this physical model will help us to let us say bring the customer on our platform and individual platform will help us on cross selling on leveraging that customer base, so what are the products we have in our minds when it comes to cross sell

Rishi Gupta

So, as I mentioned earlier with Rahul he asked similar question in terms of so you are absolutely right. Physical is our core strength we will continue to add merchants nearly we added three and a half lakh merchants in this year and we expect to add similar numbers more in FY23 as well and that is the USP which gives us the edge over everybody else who are looking at getting into this space for this customer segment. If I come to our incremental mix between the physical and digital right now as you know we have just started the journey our UPI throughput numbers have become 10% obviously UPI

Q

Just taking queue from the previous question so as Ketan already guided that for top three products which are almost two-third of our overall revenue pool we are guiding for about 15% sort of a revenue growth, would we like to peg a number to what sort of overall top line growth are we looking in at FY23 and also the bottom line growth and margins for FY23?

Rishi Gupta

I will just bifurcate this question into couple of parts yes our legacy businesses will be growing at 15% - 20% which I essentially just said in the current scenario are we essentially giving the guidance, no we are not giving a guidance how we are looking at, are we looking at a substantial growth over this year? yes we are looking at a growth which we had earlier mentioned as well in the CAGR target which we have taken for ourselves over next three to four years. As regards to margin yes there is competition which is coming up. We expect to keep the margins largely range bound. There will be

Q

I have three questions first is like we have 131 partners in CMS, so how do you assess the penetration level with these partners and of the total throughput of Rs.24,000 odd crores that we have clocked in FY22 how much will be coming in from the top 10% of these partners that is one and maybe I can take as we go along?

Rishi Gupta

Out of 131 as I mentioned banks, MFIs and NBFC were about 96% of our total volumes as of March 21 which have come down to about 70% not that their volume has come down just that we have expanded quite a bit on the CMS side. So, from that point of I would say that our penetration especially on the NBFCs and the MFIs in top 10 NBFC and MFI’s is quite high which means that we are mostly with all the top NBFC and MFI. Percentage variation could be anywhere between may be 5% to 30% of the overall business comes through the Fino platform. So, there is still a good room for us to grow in not only in

Q

My question which relates to the recent changes in the independent directors of the bank. So, we have seen two directors completing the tenure and in the first term in office. We seek the change in director, is this policy of independent directors only being given one term, new for the bank or it is a policy which has been followed since sometime now?

Rishi Gupta

That is something which has been in the press over the last couple of weeks and unfortunately which has been blown out of proportion. So, what exactly happened is that at the bank level process of renewal of term of independent director was followed and after the bank board clear it, it was sent to the shareholders for approvals. As you know our shareholder which is a holding company own 75% plus so they had in that the agenda was there and they had some other agenda also where some other renewals of other board members who are also coming up and the Holdco decided that we should only look at

Q

So, I just have a fundamental question with regard to subscription used in CASA, so the target tariff actually that we have they have to see subscription fee to avail CASA services which they could have at some other place free of cost. So, the main convenience is that they were near to that store wherein merchant acts as a banker. So, my question is since we work on educating them on how banking works and how the FinoPay app work as well. Once they are aware of the entire system what stops them from not taking subscription and stretching to another bank’s CASA systems as some other banker sys

Rishi Gupta

Multiple things which are there our ability to be present in every nook and corner of the country we have more than 93%, 94% of the districts we are covering. We added nearly 3.5 lakh merchants last year and our journey to continue to add more merchant. We have already started to get to digital and giving customer the choice to come physically or digitally to Fino platform. Multiple things which is important is from a customer point of view is ability to digitalize cash, his ability to download the app and do transactions on it and the third is the grievances handling or if there is a problem

Q

Just a couple of data keeping question so on the new CASA account on the opening side what is the monthly run rate?

Ketan Merchant

The new accounts which are coming Renish we are opening anywhere in the range of around 2.25 lakh new accounts. And what is the CMS throughput per month now? So, CMS throughput we are looking somewhere around Rs.3,000 crores throughput on a monthly basis. And this both data point as on March? Yes.

Q

Thank you Diksha for arranging this call and thank you everyone who have participated on to this call and I hope all your questions have been answered if there are anything we will be more than happy to take it offline and with the team. As you can see Fino is on a growth trajectory with the 28% growth in FY22 over 21 crossing more than Rs.1, 000 crore of top line and more than doubling of profit as such. We are adding more products and we are adding more customers and that is what we believe which help us in getting to our digital journey as well. So, with this we will end the call and we wil

Management