Fino Payments Bank jumps 17% on Q2 business update

Bank Limited (FINOPB) rose as much as 16.8% to an intraday high of ₹150.40 on the NSE on October 8, after its Q2 FY27 business update. The stock had closed at ₹128.76 on Wednesday. Average total deposits rose 13% year-on-year to ₹2,794 crore, from ₹2,480 crore. Loan referral disbursals jumped 223% to ₹278 crore, from ₹86 crore a year earlier. Cash management system (CMS) throughput grew 10% to ₹6,918 crore. Trading was heavy, with over 16 million shares changing hands by 11:30 AM. The rally came in a weak market, after three straight sessions of decline. Fino is building new revenue lines through loan referrals and deposits, which the market is rewarding. The stock had also corrected over 30% from its July highs, so expectations were low going in. The core business is weaker than the headline suggests. Transaction business throughput, a key payments metric, fell 10% to ₹3,469 crore. New deposit accounts opened in September fell 17% year-on-year to 2,44,763. The 223% jump in referral disbursals comes off a small base of ₹86 crore. The bank has also extended its interim CFO's tenure by three months, so the finance role is still not permanently filled. Investors should watch the trend in transaction throughput, new account additions, revenue and margins in Q2 FY27 results, and the appointment of a permanent CFO. The key question is whether newer businesses can grow fast enough to offset slowing growth in the core payments business. Disclosure: I do not hold any position in Fino Payments Bank Limited. This post is for informational purposes only and is not investment advice.