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

Fino Payments Bank Shares Rally 17% Following Strong Q2 Business Update

The surge in Fino Payments Bank’s share price reflects investor optimism following a robust quarterly performance.

Market Reaction to Q2 Performance

Fino Payments Bank’s share price experienced a notable rally today, opening at ₹134 on the National Stock Exchange (NSE) and climbing to an intraday high of ₹150.40. This surge comes after the bank announced its second quarter (Q2FY27) business update, which highlighted significant growth in several operational areas. As of 11:30 AM, the stock was trading at ₹145.65, reflecting a 13% increase and significantly outperforming broader market trends. Over 16 million shares changed hands, indicating strong investor interest.

Key Highlights from the Q2 Business Update

Fino Payments Bank’s Q2 update revealed a robust increase in its Current Account and Savings Account (CASA) base, which grew to 1.91 crore. The bank also reported a staggering 223% year-on-year increase in loan referral disbursals, reaching ₹278 crore compared to ₹86 crore in the same quarter last year. Additionally, total deposits rose by 13% to ₹2,794 crore, while renewal income grew by 20% to ₹28 crore. The number of digitally active customers also saw a healthy increase of 13% year-on-year, reaching 64.9 lakh.

However, not all metrics showed positive trends. The number of accounts opened fell by 17% year-on-year to 2.45 lakh, and transaction business throughput declined by 10% to ₹3,469 crore. On a brighter note, the cash management services segment saw a throughput increase of 10% year-on-year, amounting to ₹6,918 crore.

Technical Analysis and Future Outlook

According to Harish Jujarey, AVP head of technical equity research at Prithvi Finmart, the stock had previously seen a steep correction of over 30% from its July highs. However, it found support near the upward-sloping trendline around ₹125. The recent surge has broken through the short-term falling trendline resistance, suggesting potential for further recovery. Jujarey anticipates that the stock could extend its gains towards the 200-day moving average, currently around ₹165. However, he advises caution, recommending that traders avoid chasing the stock at elevated levels and instead look for a correction towards ₹142-140 for fresh buying opportunities, with a stop-loss set at ₹124.

Key Highlights

• Fino Payments Bank shares surged 17% following a positive Q2 business update.
• CASA base increased to 1.91 crore, reflecting strong customer engagement.
• Loan referral disbursals skyrocketed by 223% year-on-year to ₹278 crore.
• Total deposits rose 13% to ₹2,794 crore, indicating solid growth.
• Technical analysts suggest waiting for a correction before entering new positions.

Investor Note: The recent surge in Fino Payments Bank’s share price highlights a positive market reaction to its strong Q2 performance. Investors should remain cautious and consider market conditions before making new investments, particularly in light of the mixed results in account openings and transaction volumes.