Operating cost rose by 2.5% YoY to Rs 61.9 crore during the quarter.

EBITDA improved by 50.2% to Rs 38.9 crore in Q3 FY23 from Rs 25.9 crore in Q3 FY22. EBITDA Margin was 12.4% in Q3 FY23 as against 9.4% in Q3 FY22.

With respect to distribution network, the company said that the penetration deepened further as registered merchant count increased by 50% YoY to 13 lakhs.

Bank accounts opened during the quarter grew by 46% YoY at 7.6 lakhs setting the base for a strong potential of cross sell and up sell. Product Mix substantially improved in favour of high margin products. CASA and CMS with margins in excess of 40% contribute 26% of revenue as against 16% in Q3 FY22. CMS throughput more than doubled YoY to Rs 13,248 crore, riding on additional mandates.

CASA renewal income grew by 138% YoY in Q3 FY23 leading to an exponential growth in the company's annuity business. New CASA subscription income grew by 33% YoY.

Total deposits grew 66% YoY from Rs 589 crore as on 31 December 2021 to Rs 976 cr on 31 December 2022. The banks' total account base as on 31 December 2022 was at 67 lakhs, of which 36% accounts are active on digital payments

Rishi Gupta, CEO & managing director, said, “This quarter continues to demonstrate consistent performance amidst the prevailing macro‐economic challenges.

Our growth and profitability led approach is yielding good dividends. The strategic focus on customer acquisition is working well and this in my view is a corner stone of our future success.”

Ketan Merchant, chief financial officer, said, “Q3FY23 was the best performing quarter for us as we saw healthy performance across the financial and operational parameters.

Our product margin increased by around 120 bps to 32.1% for this quarter. Operating leverage is playing its part wherein our revenues are growing at least 10% more than cost growth. This puts us in a sweet position to further grow on bottom line at a faster pace.”

Fino Payments Bank is a subsidiary of Fino Paytech Limited, which is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. The Mumbai‐based bank operates on an asset light business model that principally relies on fee and commission-based income generated from merchant network and strategic commercial relationships.

The scrip was currently trading flat at Rs 245.45 on the BSE.