It’s their core operations income. It may be reporting requirements for banks/FIs where interest income is usually primary income. I am not sure about it though
1 Like
New norms - even other banks mentioned this in their concall. Like interest penalty and other charges now come under this. Need to probe further about what all has been now moved under “Other”
4 Likes
There was a huge drop in remittance revenue last quarter. This could be due to RBI’s stricter KYC norms for domestic remittance that was in effect from Nov ,2024. So this part of the revenue may never come back
1 Like
Transition to SFB would mean much better yield than what they are getting on SLR investments. Currently, they can invest only in SLR eligible securities and bank deposits. They are earning an yield of appx 6.6 % on calculation from last annual report. If you take a look at the gross yield on advances for the existing SFBs, Equitas - 16.55 %, ESAF- 19.6 %, AU- 14.4 %, Suryoday - 18.3 %. The major adv for Fino is it’s low cost of funds. Fino’s income from investment for the last quarter was 37 crores and PBT was 28 crores. So if they can double the yield on conversion to SFB, that would be a significant boost to profits.
Discl: Invested and biased
4 Likes