Fino Payments Bank shares hit 20% upper circuit after June business update

Shares of Fino Payments Bank were locked in the 20% upper circuit in Monday's trade (July 13), hitting a four-month high of ₹162.48 apiece as investors cheered the company's June business update.

Today's rally also marked the stock's biggest intraday gain in recent years and brought much-needed relief to investors after a prolonged period of weakness. The company had released its June operational update on Friday, after market hours, reporting steady growth in deposits and strong traction in its loan referral business.

The bank's average total deposits rose 11% year-on-year to ₹2,755 crore, reflecting sustained growth in its deposit franchise and signalling steady progress in its transition towards a more comprehensive banking model.

During the month, the bank opened around 3.1 lakh new accounts, taking its total customer base to 1.8 crore. Digital engagement also strengthened, with monthly active users on the FinoPay mobile application rising 38% to around 8.4 lakh.

The bank's loan referral business, which serves as a pilot for its proposed Small Finance Bank (SFB), also continued to gain momentum. The bank said loan referral disbursals surged 3.5 times year-on-year to ₹240 crore, highlighting the strong credit potential within its customer ecosystem and supporting its long-term lending strategy.

However, some business metrics remained under pressure. Transaction business throughput, which includes remittance, micro-ATM and AePS transactions, declined 35% year-on-year to ₹2,830 crore.

The bank attributed the decline to the continued shift in the payments ecosystem from cash to UPI, along with its focus on higher-quality, more active merchants. It added that the pace of decline has moderated compared with previous months.

Earlier in June, the bank announced a strategic partnership with fintech platform Ezee.ai to build a lending ecosystem and strengthen its lending capabilities as part of its transition into a small finance bank (SFB).

Under the partnership, Ezee.ai will deploy its artificial intelligence-powered Loan Origination System (LOS), Business Rules Engine (BRE) and Collections Management Platform to support the bank's lending operations.

With today's sharp rally, the stock's gains for July have widened to 13.4%, marking its strongest monthly performance since August 2024. Despite the recent rebound, the stock remains well below its previous highs.

At current levels, the stock is trading 50% below its 52-week high. It had declined for four consecutive months between December 2025 and March 2026, losing a cumulative 63% and falling as much as 72% below its record high of ₹583, touched in November 2021.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoy...