Fino Payments Bank stock climbs 4% in early trade, here's why

Shares of Fino Payments Bank rose 4 per cent in early trade after Reserve Bank of India (RBI) granted nod for referring customers to Finwizard Technology for mutual fund distribution, and 5paisa Capital for demat and trading services. Fino Payments Bank stock surged 3.97 per cent to Rs 286.8 against the previous close of Rs 275.85 on BSE.

The small cap share has lost 25.19 per cent since the beginning of this year. Fino Payments Bank shares trade higher than 20 day moving averages but lower than 5 day, 50 day, 100 day and 200 day moving averages.

A total of 6,255 shares of the firm changed hands, amounting to a turnover of Rs 17.47 lakh.

Market cap of the firm rose to Rs 2,307. 95 crore on the BSE. On November 12 last year, the stock hit a 52-week high of Rs 583.35 and touched a 52-week low of Rs 246 on February 24, 2022.

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"Approval granted by RBI with respect to referring Bank's customers to Finwizard Technology approval/license obtained Pvt. Ltd. (FISDOM} for Mutual Fund Distribution. b) Approval granted by RBI with respect to referring Banks customers to M/s. Spaisa Capital Limited for Demat/ Trading services under referral arrangement," said the payments bank.

"The bank's customers will be able to avail the said financial services from the third-party approval/licence to the Bank with whom the Bank has tied-up," it added.

Fino Payments Bank reported a 116.26 per cent rise in net profit to Rs 14.10 crore in the December quarter of 2021 against profit of Rs 6.52 crore in the December quarter of previous fiscal.

Sales zoomed 95.23 per cent to Rs 9.82 crore in Q3 against Rs 5.03 crore in the corresponding quarter of previous fiscal.

However, operating profit excluding other income fell 16.34% to minus Rs 251.25 crore in Q3 against minus Rs 215.96 crore in the December quarter of previous fiscal.

The payments bank made a tepid market debut last year.

Shares of Fino Payments Bank listed at a discount of over 5 per cent to the issue price on December 11, 2021. The fintech firm made its market debut at Rs 544.35 per share on the NSE against the IPO issue price of Rs 577. Price band of the IPO was fixed at Rs 560-Rs 577 per share.

On BSE, Fino Payments Bank made its debut at Rs 548 per share, implying a discount of 5.05 per cent.

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