Fino Payments Bank Share Price Rallies 17% After Q2 Business Update

Strong growth in loan referral disbursals, deposits and digital customers drives buying interest, while lower account additions and transaction throughput remain key concerns

Shares of Fino Payments Bank rallied sharply on Thursday after the company released its second-quarter business update for FY27, snapping a three-session losing streak. The stock surged as much as 17 per cent during intraday trading as investors responded positively to strong growth in loan referral activity, deposits and digitally active customers.

Fino Payments Bank shares opened at ₹134 on the NSE, around 4.5 per cent higher than the previous close, before extending gains to an intraday high of ₹150.40. At around 11:30 AM, the stock was trading nearly 13 per cent higher at ₹145.65, significantly outperforming the broader market.

The stock later remained firmly in positive territory, with the latest reported price at ₹148.75, up around 15.5 per cent.

Loan Referral Disbursals Surge 223%

The biggest positive from Fino Payments Bank's Q2 business update was the sharp increase in loan referral disbursals.

Loan referral disbursals jumped 223 per cent year-on-year to ₹278 crore in the September quarter, compared with ₹86 crore in the corresponding period last year.

The strong increase indicates a significant expansion in the bank's loan referral business and could support fee-based income growth as the company scales its financial-services distribution platform.

The performance also suggests that demand for credit-linked products through Fino's customer network remains strong.

CASA Base Reaches 1.91 Crore

Fino Payments Bank's Current Account and Savings Account (CASA) customer base increased to 1.91 crore during the September quarter.

A growing CASA base is strategically important for a payments bank because it strengthens the customer ecosystem and creates opportunities to cross-sell financial products and services.

The expanding customer base could also support future growth in digital payments, insurance, lending referrals and other fee-generating businesses.

Deposits Grow 13%

Average total deposits increased 13 per cent year-on-year to ₹2,794 crore during the quarter, compared with ₹2,480 crore in the year-ago period.

The increase reflects continued growth in the bank's deposit franchise despite a challenging competitive environment in digital and payments banking.

Higher deposits can strengthen the bank's ability to serve customers and deepen relationships across its distribution network.

Digital Customer Base Continues to Expand

Fino also reported healthy growth in digitally active customers.

The number of digitally active customers increased 13 per cent year-on-year to 64.9 lakh. FinoPay active customers rose 12 per cent to 8.1 lakh.

The growth highlights the increasing role of digital channels in Fino's business model and indicates that customer engagement remains relatively strong.

Higher digital activity can potentially improve operating efficiency while creating additional opportunities for cross-selling financial products.

Renewal Income Rises 20%

Renewal income also showed healthy growth during the quarter.

The income increased 20 per cent year-on-year to ₹28 crore from ₹23.3 crore in the corresponding quarter last year.

The improvement provides another positive signal for the bank's recurring revenue profile and indicates increasing monetisation from its existing customer relationships.

Account Openings Decline

Despite several positive operating indicators, the business update also contained some areas of weakness.

The number of accounts opened during Q2FY27 declined 17 per cent year-on-year to 2.45 lakh from 2.95 lakh in Q2FY26.

A sustained decline in new account additions could eventually affect customer acquisition momentum and future cross-selling opportunities.

Investors will therefore be watching whether the decline is temporary or represents a broader moderation in customer acquisition.

Transaction Throughput Falls 10%

Transaction business throughput also declined during the quarter.

The metric fell 10 per cent year-on-year to ₹3,469 crore, indicating some pressure in the bank's core transaction-related business.

The decline is important because transaction volumes remain a key component of the broader payments ecosystem and can influence fee-generating opportunities.

However, the weakness was partly offset by stronger performance in the cash management business.

Cash Management Services Grow 10%

Cash management services throughput increased 10 per cent year-on-year to ₹6,918 crore.

The growth indicates that Fino continues to expand its presence in business and cash-management services, providing some diversification from traditional payment transactions.

The combination of higher CMS throughput and strong loan referral growth could help the bank offset weakness in certain transaction businesses.

Stock Recovers After Sharp Correction

Fino Payments Bank shares have experienced significant volatility in recent months.

According to technical analysis, the stock had corrected more than 30 per cent from its July highs before finding support around ₹125 near an upward-sloping trendline.

Thursday's sharp recovery pushed the stock above its short-term falling trendline resistance, improving the immediate technical setup.

However, the stock remains well below its 52-week high of ₹339, indicating that the recent rally represents a recovery from depressed levels rather than a return to its previous peak.

₹165 Emerges as Key Technical Target

Technical analyst Harish Jujarey of Prithvi Finmart said the stock could extend its recovery towards its 200-day moving average, placed around ₹165.

However, he cautioned investors against chasing the stock after the sharp one-day rally.

A correction towards the ₹142–140 zone could provide a more favourable entry point for traders, with a stop-loss around ₹124, according to the technical view.

The ₹125 area remains an important support zone following the recent correction.

Strong and Weak Signals in Q2 Update

Fino's Q2 update presents a mixed but broadly encouraging picture.

Positive factors include:

Loan referral disbursals up 223 per cent to ₹278 crore.
Average deposits up 13 per cent to ₹2,794 crore.
Renewal income up 20 per cent to ₹28 crore.
Digitally active customers up 13 per cent to 64.9 lakh.
FinoPay active customers up 12 per cent to 8.1 lakh.
CMS throughput up 10 per cent to ₹6,918 crore.

Areas requiring attention include:

New account openings down 17 per cent.
Transaction business throughput down 10 per cent.
Stock remains significantly below its 52-week high.
Broader market weakness could increase volatility after the sharp rally.

Market Outlook

Fino Payments Bank's Q2FY27 business update has provided investors with several reasons for optimism, particularly the 223 per cent surge in loan referral disbursals and continued growth in deposits and digital customers.

However, the decline in new account openings and transaction throughput shows that the recovery is not uniform across the business. Investors will need to assess whether strong growth in lending referrals, digital engagement and cash-management services can sustainably offset weakness in traditional transaction activity.

From a technical perspective, the ₹140–142 zone could become an important near-term support area after Thursday's sharp rally, while ₹165, around the 200-DMA, remains a key upside level. A sustained move above this zone could improve the medium-term technical setup.

Given the stock's sharp intraday rise, volatility is likely to remain high. Investors may therefore focus on the sustainability of the company's operating growth rather than treating the one-day rally as confirmation of a long-term trend reversal.