Fino Payments Bank June 2026: deposits up 11%, loans 3.5x

Why the June business update matters

Fino Payments Bank released its June 2026 business update after market hours, outlining how its core deposit franchise, customer acquisition, and digital usage are tracking. The update is closely watched because the bank is working toward a transition to a Small Finance Bank (SFB) model, where balance sheet-led products can expand. June numbers also provide context after a strong May update, and they arrive at a time when the stock has struggled to build sustained momentum since late 2024.

Deposits grow 11% year-on-year

For June 2026, Fino Payments Bank reported average total deposits of ₹2,755 crore, up 11% year-on-year (YoY). The bank described the deposit growth as steady progress in building a stronger deposit franchise as it moves toward a more comprehensive banking model. In the prior month (May 2026), it had reported average total deposits of around ₹2,762 crore, up 10% YoY.

Deposits are a key metric for payments banks because of their product constraints compared with full-service banks. The June update, therefore, signals how effectively the bank is expanding its liabilities while keeping customer acquisition and usage active.

New accounts: 3.1 lakh added in June

Fino Payments Bank opened around 3.1 lakh new accounts in June 2026. Another data point in the update puts the figure at 3,13,263 new deposit accounts, a 31% YoY increase versus 2,39,300 in June 2025. After these additions, the bank said its total customer base reached 1.8 crore accounts.

May 2026 had also shown strong acquisition, with roughly 2.9 to 2.94 lakh new deposit accounts opened, up 29% YoY. Taken together, May and June show continued traction in account additions even as certain transaction categories have moderated.

Digital engagement: active users move higher

The June update pointed to stronger digital engagement through the FinoPay mobile application. Monthly active users on the app increased 38% YoY to around 8.4 lakh. Separately, the bank said digitally active customers expanded 22% YoY to 64.7 lakh in June, while active FinoPay customers climbed 38% YoY to 8.4 lakh.

For May 2026, the bank had reported digitally active customers of about 62.6 lakh, up 19% YoY, and FinoPay active customers of about 7.2 lakh, up 22% YoY. The June figures indicate continued improvement in app-led engagement, which is important as customer payment behaviour shifts away from cash-based services.

Loan referral business: disbursals rise 3.5x to ₹240 crore

The standout metric in June was the loan referral segment. The bank reported referral loan disbursals of ₹240 crore in June 2026, a 3.5x rise. Another stated comparison in the update shows the jump as 253% YoY, from ₹68 crore in June 2025 to ₹240 crore in June 2026.

The bank has positioned this loan referral segment as a pilot aligned to its proposed SFB strategy. In May 2026, loan referral disbursals were ₹210 crore, versus ₹73 crore in May 2025, described as nearly three times higher.

Transaction throughput falls as UPI use rises

While deposits and loan referrals improved, transaction throughput declined in the period because of the ongoing shift to UPI. The June update cited a 35% decline in transaction throughput due to migration toward UPI.

The May update provides more colour on where the pressure is visible. Transaction throughput across remittances, micro ATMs and AePS fell 48% YoY to ₹2,546 crore from ₹4,863 crore. The bank attributed the moderation to customers moving to UPI from cash-based services and to its more selective approach to merchant partnerships.

Stock performance: under pressure since September 2024

The bank’s shares have remained under pressure since September 2024, with recovery attempts seeing selling. The stock closed in the red for four straight months between December 2025 and March 2026, losing a cumulative 63%. This decline left it 71% below its September 2024 peak of ₹467 per share.

In June, the stock reacted to business updates. On 9 June, shares touched a day high of ₹141 on the BSE, and were trading at ₹137.85 at 14:00, up 7.70% on the day. The 52-week high was cited at ₹339 and the 52-week low at ₹110.10. Separately, the share price was reported at ₹135.40 as on 10 July 2026.

SFB transition signals: partnership and positioning

On the transition front, Fino signed a partnership with Ezee.ai to build a lending ecosystem, with the platform running on a Finacle-based core banking system. The bank has repeatedly linked its referral-led credit buildout to its ambition to broaden products under an SFB licence.

The broader set of updates referenced that the bank has received in-principle approval from the Reserve Bank of India to transition to an SFB, while focusing on compliance and operational efficiency amid regulatory challenges.

Key numbers at a glance

Market impact: what the update changes and what it does not

The June update reinforces two themes that investors track in payments banks: liability build-up and engagement migration to digital rails. Deposit growth of 11% YoY and continued high account additions support the narrative that customer acquisition is holding up. At the same time, the throughput decline highlights that product mix is changing, with cash-led services losing share as UPI adoption rises.

The loan referral run-rate is another key swing factor. A rise to ₹240 crore in June disbursals, following ₹210 crore in May, signals that the bank is expanding its distribution-led credit referral capability through partner institutions, in line with its SFB ambition.

Analysis: why loan referrals and deposits are moving together

The data points suggest the bank is building two parallel engines: deposits on one side and credit referrals on the other. Deposits support a stronger base of customers and engagement, while referrals indicate how effectively the bank can originate credit opportunities even before operating as an SFB.

But the update also underlines a transition cost. Throughput numbers have weakened in areas tied to cash handling and certain merchant activity, a change the bank has linked to UPI migration and tighter merchant selection. The market will likely continue to assess whether higher digital activity and credit referrals can offset weaker cash-led throughput trends.

What to watch next

Fino has pointed to partnerships such as Ezee.ai as part of building a lending ecosystem, and it continues to position the referral business as a pilot for its SFB plans. Future updates are likely to be tracked for deposit trajectory, digital engagement retention, and consistency of referral disbursals.

Conclusion

Fino Payments Bank’s June 2026 update showed deposits rising 11% to ₹2,755 crore, with 3.1 lakh new accounts and a sharp jump in loan referral disbursals to ₹240 crore. The main offset was weaker transaction throughput amid a broader shift from cash-based services to UPI. The next set of business disclosures will be watched for evidence that the bank can sustain deposit growth and credit referral momentum as it progresses on its SFB transition.