“We are in the final stages of putting together the application,” he said Wednesday.
The bank has nearly Rs 600 crore of net worth while the minimum capital requirement for small finance banks is pegged at Rs 200 crore.
Reserve Bank of India allows non-corporate payments banks to apply for a small finance bank license after completing five years of business.
“This will provide us an opportunity to grow. Every company looks up to the next level of growth opportunities,” Gupta said, adding that the development in India’s payments ecosystem and ability shown by some of the financial technology companies to lend is providing Fino management the confidence for applying for the licence.
While the main objective of payments banks is to widen the spread of payment services as well as financial services on the liability side to small business, low-income households, migrant labourers, small finance banks are allowed to operate both in the asset and liability sides of the business.It reported a net profit of Rs 19.5 crore, registering 41% rise over Rs 13.8 crore in the year ago period. Its revenue increased 18% year-on-year at Rs 359 crore.