FINO Payments Bank Ltd (FINOPB) Q4 FY22 Earnings Concall Transcript

FINO Payments Bank Ltd (NSE: FINOPB) Q4 FY22 Earnings Concall dated May. 17, 2022

Corporate Participants:

Rishi Gupta — Managing Director and Chief Executive Officer

Ketan Merchant — Chief Financial Officer

Analysts:

Shreya Shivani — CLSA — Analyst

Rahul Maheshwari — Ambit Asset Management — Analyst

Renish Bhuva — ICICI Securities — Analyst

Umang Shah — Kotak Mutual Fund — Analyst

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Nishit Master — Axis Securities — Analyst

Nikhil Agrawal — VT Capital Market Private Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good morning. I’m Diksha, the moderator for this conference. Welcome to the Conference Call of FINO Payments Bank Limited arranged by Concept Investor Relations to discuss its Q4 and FY’22 results. We have with us today Mr. Rishi Gupta, Managing Director and Chief Executive Officer; Mr. Ketan Merchant, Chief Financial Officer; and Mr. Sayantan Mitra, Investor Relations. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Rishi Gupta, Managing Director and Chief Executive Officer. Thank you, and over to you, sir.

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you, Diksha. Good morning and good afternoon to all analysts and investors who have joined us on the call today. Thank you for taking the time out to attend the FINO Payments Bank quarter 4 FY’22 earnings conference call. Our growth trajectory continues and has been the trend over the last 2 years of profitability. This quarter as quarter 4 FY’22 has been our best ever quarter, and like other financial years, FY’22 was the best financial year ever for FINO. However, there were few special achievements for FINO Payments Bank in this financial year, and that I would like to make special mention of.

Our intent in current and savings account offering was to offer a neighborhood bank account to every Indian, and the last mile with convenience, service, emphasis and profitability at the helm. In FY’22, we opened 2 million plus accounts and crossed INR100 crores of revenue landmark during this year. Being a bank that doesn’t offer FDs and RDs and any loan products to its customers, this milestone is a significant achievement for us.

Similarly, when we started our payment services business, which we call cash management services, we wanted to digitize cash at every nook and corner of the country. Our problem statement was the cash on ground waiting to be digitized. When we started, we never realized the gravity of the problem statements to corporates across sectors and the working capital search they had to incur because of the same. A couple of years down the line, this business has become a major value driver for FINO Bank, even when bigger commercial banks dominate the space at lower take rates than us. As we speak, the gross and net revenue from CMS in the second half of FY’22 is higher than the full year of FY’21 numbers. Journey of CMS started with customers being predominantly in banks, MFIs, and the NBFC sector, and the Bank has evolved and has now 131 clients as at March and across sectors like logistics, e-commerce, cap aggregators and more.

To give a perspective, in March FY’21, the business had 96% of income coming from banks, MFIs and NBFCs. Now as we stand, it is 70% led by diversification and the support potential which we have from the multiple industries. Value creation is the cornerstone of our product innovation philosophy. We monitor innovation by competition continuously and also have an active feet on street team on the ground. We have created pioneering products in the space, scaled them up to sizable levels and broken even as well. There are very few companies in India today that generate INR1,000 crore plus top line from core payments business only. We are proud we could achieve this within 5 years of our coming to existence and that too on a sustainable profitable basis.

Other parameters at a whole bank level, continue to exhibit stand around standout performance for FINO Payments Bank. I will [Technical Issue] quarterly numbers to be taken by Ketan, my CFO.

I would want to take the opportunity to highlight some strategic key indicators and my vision that will shape our FINO Bank future in the next couple of years. Customer ownership. I mentioned in my previous calls as well, this is the basis on which we are building our organization and leveraging our network for future cross-sell opportunities. As I mentioned earlier, we have opened more than 2 million bank accounts in FY’22. Customer loyalty is key to any bank and so it is to FINO. Revenue from renewal of CASA as an indicator of long-term institutional customers with us was 74% year-on-year growth from INR36.6 crores in FY’21. The subscription business has now started generating renewal income like an annuity product, and going forward, there will be compounding multiplier effect coming into play. We have already started to see this in this year.

Alternate channels. Spends on debit cards are growing rapidly at both throughput as well as unit level. Throughput on debit cards in FY’22 is up 83% year-on-year to nearly INR4,000 crores, while average spends per transaction moved up by 72% year-on-year to roughly about INR2,700.

Digital journey. This is something which I made special mention in my last call as well. This is a journey, which will continue to build over the next few quarters and years to come. Our digital throughput is at INR18,393 crores for FY’22, nearly 10% of the overall FY throughput for the year. It’s also the use case one with the entire FINO 2.0 journey will hinge on. On a strategic basis, we’re steadily investing in technology and digital tools and create human capital for a sustainable model dwelled into digital.

Cross-sell. Although we are a very early stage and loan cross-sell portfolio, just scaling up rapidly, our unit economics has already started to improve with an average loan of about, from INR5,200 in October 2021 to nearly INR7,600 in March ’22, a jump of nearly 45%.

I would also like to explain that our Micro ATM and AEPS throughputs have been largely flat in the last quarter, but it generates enough footfall to result in a higher CASA and a higher throughput through the CASA accounts. Some of our throughputs which are coming through Micro ATM and AEPS as an offers have started to also move under CASA, that is also resulting in some flat offers business in Micro ATM and AEPS.

All of the above will combine to form the foundation of our digital foray. Our digital strategy will be very different as compared to what we are commonly seeing in here across the fintechs. We are already executing the vision of new banks and BaaS, Banking-as-a-Service models through our proprietary savings account and offers businesses.

Our segments of customers is gradually getting into the group of cell banking through a majority still continues to be an assisted banking. As you would recall, we had spoken about phygital, the access to physical as well as digital. I think FINO has created that model in which we are able to provide assisted as well as digital services. Our digital strategy will be to provide another option to the customers of the Bank. This is how we will evolve into an omnichannel bank, and all of this, our focus will continue to remain on transaction business. Here again, as I said, it is a process of investment and enhancing the base in FY’23 to enable to facilitate higher customer penetration and experience, benefits of which will be witnessed from FY’24 onwards.

We are also happy to welcome our Chief Digital Officer, Tejas Maniar. A few of you have interacted with him at one to one conversations. He comes with a fabulous track record of building digital stack at HDFC Bank and IDFC Bank, and more importantly, merit a success story there as well.

As I would like to mention that we have made an area into strategic partnership with Paysprint. The partnership with Paysprint is expected to synergize on host of financials and non-financial use cases for the emerging India customers through the API plugging to build the banking digital platform. This will not only result in attracting more customers into the funnel, but will also help in deepening engagement with existing customers.

We have also received approval from Reserve Bank of India on international remittances. Pilot launch is already done, basis learning full-fledged launch is expected between July and August. Some of our other products like fixed deposits, mutual funds and demat accounts have also received approval from RBI in the last quarter. We are expected to go live between quarter 2 and quarter 3 this year.

As a strategic sum-up, what I want to mention is that our endeavor is to continue to thrive on growth products of CASA and CMS and thereby create platform for customer ownerships, leveraging and cross-selling and simultaneously investing in technology and digital in FY’23, ’24 to ensure that we are ahead of our curve for customer transition into digital and a profitable digital bank.

With that, I would now like to pass on the forum to Ketan, our CFO. He will take you through the financials in detail.

Ketan Merchant — Chief Financial Officer

Thank you, Rishi. Ladies and gentlemen, good morning and good afternoon to all of you, wherever you are. Let me begin first by congratulating all our teams on the remarkable landmark of crossing INR1,000 crore revenue. When we started this journey, we had our ambition. But the way the growth has essentially happened on a steady basis, it’s something where all of us are proud of. We have several underlying contributors who have pivoted this achievement for us. To begin with, our merchants, our teams and our loyal customers.

With this, I directly come to the parameters and the numbers which you all should take note of. In FY’22, our throughput grew by 41% Y-o-Y to touch INR1.87 lakh crores which is more than USD24 billion. Digital is something which Rishi earlier mentioned as well. Our UPI throughput now contributes 10% of the overall throughput.

Full year revenue has grown by 28%, EBITDA grew by 62% and PAT grew by 10% Y-o-Y. Here, operating leverage is also playing its play. If we see revenue per employee, that has increased to INR3.5 million per employee — revenue per employee, which is an 18% growth. EBITDA margin crossed 10% for the first time, it was a 10.3% for the quarter. PAT margins for the quarter was around 6.2%.

CASA and CMS, which are our growth products, has had a revenue of 17.3% in FY’22 vis-a-vis 11.4% in the previous year. Revenue on CASA in FY’22 grew by 96% and CMS grew by 91%. On an overall basis, as we said, revenue growth of 28%, cost growth is around 12%. This is the overheads, which we are looking at. Earlier I definitely mentioned about operating leverage, how it has played to. Here, we will have to be cognizant that in recent times, we’ve also been hit by some inflation and some competition as well. However, in FY’22, good cost control, the revenue drivers of CASA and CMS, which generate margin in excess of 40% has resulted in substantial growth in EBITDA and PAT, 62% and 109% respectively.

Now, let me just give you a perspective of FY’23. Rishi mentioned about the strategy and the vision, which we are running with. Coming to FY’23, what should be the drivers, which we are looking at? We continue to have our spree on customer ownership. Yes. So acquiring new CASA is something which is there on our radar. And that will help us in the long term with cross-selling avenues as well. Second aspect, CMS, again a growth driver in ’22 and will continue for ’23 as well.

For our transaction and legacy business, as we mentioned earlier, we use them as a footfall to convert customers into our own customer and thereby create a platform. One point which I also wanted to mention out here is, we are investing, we are investing into digital, we are investing into technology and marketing as well. So there will be definitely investments, which will happen in these 3 aspects. However, our lean model is our USP and in long run our endeavor continues to ensure that we can innovate through technology investment and to ensure that we stick to the commitment of ROE, which we made during the roadshows.

Our core business continues to grow. I have dovetailed the products, which will be growing off and that will help us to invest into the new growing digital era, which we are looking at as well. Some very interesting trend, which I will just throw upon and these are parts of our presentation as well. In the hinterlands of India, which we have tried to cover in this section, which I mentioned, 6 districts of Bihar combined digitize more cash through CMS in FY’22 than the entire State of UP and this is the data, which we have centrally produced. Around 9 states are now doing excess of INR100 crore worth of cash digitization. This is what we were essentially saying that how we are digitizing cash and bringing the wider array of customers into our domain.

We’ve spoken about Micro ATM and AEPS as well. We are using these as a channel to have our own customers. If we see AEPS industry is overall 5x of the size of Micro ATM industry and is growing fast. Our analytics team has worked out that AEPS transactions tend to have a better positive correlation to CASA conversion. In FY’22, 29 states have had a positive correlation of AEPS to CASA conversion, while 14 states had a positive correlation from Micro ATM to CASA conversion. We’ve been speaking about CASA, we’ve spoken about how we create an annuity income. So now, let me just go into how do we go about renewal. This is something, which we’ve been asked in the past and we’re using a scientific method of doing it out.

Coming to some insights of renewals, we’ve seen higher propensity of renewal when the average balance in saving account is greater than INR122. In such a scenario, renewal rate is 77% if the average balance is more than INR447, the renewal rate increases to 87%. Renewal ratio in little lower accounts maintain balance between INR122 to INR447 is at 59. However, even in this bracket, the customers who transact more than thrice in a year have a higher propensity for renewal. The long and short of it is the subscription base and the annuity income, which we have created off. We are working on the analytics tool to ensure that we target the right customers at the right time.

To sum it up, our vision for FINO 2.0 will be to leverage existing footfalls generated by our mature businesses like remittance, Micro ATM and AEPS and convert them to FINO by subscription model, which I just said. Around 88% of our new accounts sources is now subscription accounts. These accounts will generate an annuity like renewal revenue each year, which we had explained earlier, but more importantly, this is just the point of customer ownership and it’s the beginning of our customer ownership and thereafter we can dovetail the new products, the loan referrals and other products which we are doing, right, cross sell will also come into the foray in later part or the end of FY’23. Through our analytics, I’ve mentioned, all of this is being monitored, we have got approvals of new products from RBI whether it is international remittance, it is FD and loans and mutual products as well. We will be launching them in a phased manner as Rishi earlier mentioned it off.

Overall, we seem to be confident of our business, however, we will also be cautious towards our rising cost.

With this, I’ll just open the floor. I’ll go back to the operator or moderator for a Q&A.

Questions and Answers:

Operator

Thank you so much. We will now begin the question-and-answer session. [Operator Instructions] We take the first question from the line of Shreya Shivani from CLSA. Please go ahead.

Shreya Shivani — CLSA — Analyst

Thank you. Congratulations on a good set of numbers. I have 2 questions. First is on the competition. So recently, we’ve heard about one of the payment banks at least giving very aggressive targets about how they’re going to grow in the country etc. So if you can talk about that from your perspective.

And secondly, on the international remittance business, so I wanted to understand that since a larger part of your geographical expanse is more towards West to probably Central to North India. Do you think for international remittances, you may have to expand to newer geographies from where people mostly migrate abroad for work? So just wanted to understand your strategy on the international remittance bit and the competition. Thank you.

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you, Shreya. This is Rishi. On the payments bank competition what we are hearing is from other payment bank as well, see, I think the growth of payments bank has been quite phenomenal in the last couple of years and the payments bank which you are referring to is already a telco-led payments bank, so they have a lot of customers who are already onto their platform somewhere around maybe 25 crores to 30 crores customers who are already on the telco platform. So from a competition point of view, we have been with them facing competition for the last few years. In fact, a lot of products which we offer like CMS, CASA, remittances, we’re much ahead of them in some Micro ATM, AEPS, we are much ahead of them in all those products.

Where they score better on us is on the bill payments side, which is largely recharges and DTH payments, which is their core platform usage as well from a telco point of view. So personally I also believe that with the competition coming up, especially from established players like the one you referred or even with bigger bank, we are only covering a portion of the customers who need access to better banking services. With more players coming in, the access will become better, these people will move away from going to branches and ATMs and will come to merchant network for doing transactions and doing banking. So while the competition definitely will heat up over a period of time, but we at FINO have been added and especially on some products we are much ahead than competition is concerned.

On your second question on international remittances, we are actually quite active in all the geographies from where international remittances come into like you have geographies like Gujarat, you have geographies in Kerala, part of Bihar, UP, so there, we have already a very active — Punjab, where we have a very active base. So, our merchant expansion, obviously we’ll continue to expand in identifying specific merchants who can do international remittance. But our presence is already there and we don’t need to expand too much to gain a higher share on international remittances as we go forward with that product.

Shreya Shivani — CLSA — Analyst

Got it, sir. Do you also have plans of expanding towards Southern India or something like that because I mean, just, if you think about it, most people, it’s from the Southern India who will probably migrate to Middle East or something for work like that who will use international remitance. So that’s where I was coming from.

Rishi Gupta — Managing Director and Chief Executive Officer

Yeah, so on Southern India, Kerala is one of the biggest markets for international remittance largely coming from UAE as such, we already have a very deep presence in Kerala both on our own network as well as on the BPCL network, plus we have also seen a big growth coming in some of the other states like Tamil Nadu and Karnataka which we started only couple of years back. So South, roughly, is around 15% of our overall number for FY’22. We expect that the South business will definitely grow as our expansion on the employees as well as on the network continues in this year. As far as international remittance is concerned, we are already, as I mentioned, well present on the Kerala side.

Ketan Merchant — Chief Financial Officer

Shreya, Ketan here. On your point in terms of newer geographies, I should reckon it off that we are definitely expanding into new geographies. Other feet on street, the increase is essentially happens is largely into this new geographies, which we are looking at. We’ve also seen a 58% kind of a merchant growth which Rishi earlier alluded to. So irrespective of international remittances, but we are increasing the footfall — our footprints in the geographies like South and East as well.

Shreya Shivani — CLSA — Analyst

Got it. This is helpful. That’s it from me. Thank you.

Operator

Thank you. We take the next question from the line of Rahul Maheshwari from Ambit Asset Management. Please go ahead.

Rahul Maheshwari — Ambit Asset Management — Analyst

Hi Rishi, Rahul here. Congratulations on the excellent numbers. Two questions. Rishi, can you give, as you have mentioned that end-to-end customer digital journey will be the crucial part in the FINO 2.0. So can you give some examples within your entire transition how the next level of growth would be panning out, keeping the customer ownership, which is core focal point and the cross-sell.

Rishi Gupta — Managing Director and Chief Executive Officer

You said you have 2 questions. Do you want to —

Rahul Maheshwari — Ambit Asset Management — Analyst

And second question is also on the subscription kick-in, you have given a breakup that on an average balance how much the renewable rate is there, but can you give, what is the subscription charges which the FINO is charging. That would be helpful. Thank you.

Rishi Gupta — Managing Director and Chief Executive Officer

Good questions, Rahul, and thank you for your opening remarks. So on the digital journey, FINO has an edge over everybody else when it comes to this segment of customers and the geographies, which are concerned, largely, we have seen there are digital companies who do transactions for people who already have money into the bank as such, but FINO through its unique model, which is the phygital model, we are able to digitize cash as well as do transactions on the digital platform. About 4 months back — 5 months back, we actually relaunched our FinoPay app with completely new avatar. And we are seeing good results coming out of that new launch which has happened, but we believe, is that a customer who is already coming to us through Micro ATM or AEPS becomes a FINO customer when he opens up a savings account with us. So once you opened up a savings account, we actually motivate him, promote him through our merchant and through our direct engagement channels that you download our FinoPay app and start using it, you can see the UPI numbers growing to nearly INR18,000 crores and 10% of the transaction volume for FINO in FY’22. So once he opens up a FinoPay account, then we motivate him through multiple nudges to use UPI as an overall platform.

We have also seen that a customer who uses UPI actively is able to also renew our subscription as the renewal subscription rate is far higher on that. So once a savings account is opened, a FinoPay app is downloaded, then we push him to the UPI platform and then over a period of time, the cross-sell, which is expected through mutual funds, digital gold, FDs and some of the other products which we are going to launch will help us in gaining higher pocket of his business through the FinoPay app as well as the physical network, which we have created. So our journey is unique from starting from physical to digital and helping and handling the customer both on assisted as well as on the digital side. So this is the broad digital journey which we envisage for a customer from our physical access to our savings account to cross-sell on to multiple products.

As I mentioned earlier in my last call, we have been quite active on the payments side on multiple payment products. We have a full bouquet of products on the liability side, with now FD also coming in, that will plug that gap. On lending, we have already, we have launched products with the consumer as well as on the merchant loan. And finally, on investments, now we received approvals over and above insurance, we can do mutual funds and digital gold. All these products will get sold through the digital services and through the digital platform, which FINO is creating and the uniqueness Rahul is the assisted as well as the ability to handle cash on the ground.

The second question —

Rahul Maheshwari — Ambit Asset Management — Analyst

Rishi, just a follow-up on this, as you mentioned that the 2 basic products like Micro ATM for direct money transfer or AADHAR enabled, how much customers are getting converted into the CASA and the CMS. Can you give some conversion rate and — because from there onwards, we are finding that these are the products where the starting point for the process starts take place. So —

Rishi Gupta — Managing Director and Chief Executive Officer

When we started about couple of years back on this conversion of AEPS and Micro ATM, we could see a conversion around 0.25% to 0.5% of the customers who are walking in into doing transactions are getting converted. Right now, we actually hit a peak of about 2.5 lakh accounts in the month of January and we opened nearly 6.75 lakh accounts in the last quarter, which has been the highest and in previous — and quarter before that we had about 5.5. So from 5.15, we went to 6.75 lakh accounts in a quarter. So roughly, I would say anywhere between 1% to 1.25% of customers who are walking in, roughly about 2 crores to 2.5 crores customers walk in to our platform every month, so about a percentage to a percentage 1.25% is the conversion from walk-ins into our platform.

Rahul Maheshwari — Ambit Asset Management — Analyst

And just a follow-up on this, Rishi, that once they have opened the basic CASA and cash management services, how much of that is getting converted into the loan referrals or the other higher products which you are envisaging?

Rishi Gupta — Managing Director and Chief Executive Officer

When a customer opens up an account, we can — we have seen that his transaction volumes definitely jumps up and we not only make money from the subscription revenue, but the usage on the e-commerce, the usage on the PoS of debit card as well as some other income, which we are able to generate, we’re able to make money. Our customer account conversion from FinoPay account is very, very low as of now because we just started the product about a quarter back. Give us another 6 months, we’ll be able to give you a better idea in terms of how much is that conversion on that account.

Rahul Maheshwari — Ambit Asset Management — Analyst

Sure. And on subscription, can you give?

Ketan Merchant — Chief Financial Officer

Hi Rahul, Ketan here. On your subscription-based question, I think I’ll just draw attention to Slide 32, which essentially shows how our subscription revenue is growing both on new subscription and renewal. To answer your point, what is the charges, which we take from the customers, we have various terrains of customer products, which we have — the Shubh, which is the highest variant, we are charging around INR449 and then there are 2 other variants, wherein we charge INR349 to INR250. On an average, given the weightage of all these products together, we would — our collection or our charges will be anywhere in the range of INR410 to INR430. How does it essentially works is, as I’ve mentioned, this is a very high yielding margin and in somewhere in our notes also, we’ve said that when a customer comes for renewal in the year 2 onwards, the cost essentially is lower. We may not have to pay the margin back. So of this INR449, assuming we are going for Shubh account renewal, our margin generally comes to around 60%, 70%, which means 70% of our INR449 is where we have a residual thing and we do not have any cost to be incurred of.

Also, you asked, an earlier question in terms of correlation between the conversion, what we said earlier as well, our analytics team has worked out that AEPS customers have the highest propensity to convert into a CASA. Thereafter, it is remittance and Micro ATM. So when we are targeting these customers, it is this analytical tool, which we’re essentially using it off, and in certain cases, it is also a geographical specific as well based on the demographic and the behavior, which the India at large is doing. So that’s how we attempt to target a subscription revenue or the renewal as well as the new subscription.

Operator

Thank you. [Operator Instructions] We take the next question from the line of Renish Bhuva from ICICI Securities. Please go ahead.

Renish Bhuva — ICICI Securities — Analyst

Yeah, hi. Hi, Rishi, Ketan. Congrats on a good set of numbers. So just 2 broad question on the strategic side. Okay, so let’s say we are embarking in this journey of sort of building a digital platform, but in that case, let’s say, the existing merchant networks what we have as on date of around 10 lakh merchants, so incrementally how one should look at the mix of let’s say of physical versus digital because I strongly believe that this physical model will help us to, let’s say, bring the customer on our platform. And the digital platform will help us on cross selling maybe leveraging that customer base. So what are the products we have in our mind when it comes to cross sell and what are the traction on the trajectory as on March 22?

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you, Renish, for your question. So as I mentioned earlier in with Rahul, he asked similar question in terms of — so you are absolutely right, physical is our core strength. We will continue to add merchants, nearly we added 3.5 lakh merchants in this year and we expect to add similar numbers and more in FY’23 as well. So — and that is the USP, which gives us the edge over everybody else who are looking at getting into this space for this customer segment. If I come to our incremental or the mix between the physical and digital, right now, as you know, we have just started the journey and our UPI throughput numbers have become 10%, obviously UPI throughput doesn’t give us revenue as such from the fact that you can’t charge on the UPI throughput, but the fact that the UPI throughput also results in a higher customer retention. It also results in a more stickiness for us and also higher subscription renewal, as such. So on the digital products, we don’t have a mix in mind right now that what mix we are going to, we are pushing on both the sides.

You can say that we understand the physical business far more because that’s been our business for the last 10, 15 years. Digital is something which we are learning as we are building up on the model, we have built up — we are building up the team, we have, as I mentioned, we have a Chief Digital Officer now and the team is getting build up, we relaunched our Fino BPay app as FinoPay app, we are pushing and doing nudges on digital platform. Some of the products, which I mentioned earlier especially the ones which we have got approval is with the mind to push that on the digital side itself, so products like FDs, products like — even we started CMS on FinoPay, so anybody who wants to pay money and but can’t go to a merchant point, he can directly pay through the CMS platform which we have put on the FinoPay app. So all FDs, mutual funds, digital gold, demat accounts is something, which we believe can be rolled on to the digital platform and it’s a platform where people can do it yourself. The biggest advantage, Renish, we have over everybody else is, again, our ability to digitize cash, and that is something which we are very cognizant of. We are aware of it and that is something we’ll continue to build as we go forward in the next couple of years.

Renish Bhuva — ICICI Securities — Analyst

Okay, sir. Just a follow-up on that. So again let’s say when we are building the product portfolio, of course, we’ll be keeping in mind the kind of customer base, we have, let’s say more of a rural kind of a customer segment. Of course, we are digitizing cash, but I mean, do we have any, let’s say, customer cohorts suggesting people are also using the — any of the digital transaction mode, maybe UPI or whatever, because I have my doubt whether these customer base will be to operate on their own when it comes to the digital platform.

Rishi Gupta — Managing Director and Chief Executive Officer

So Renish, you can, of the data, I think can show more than anything else. We have 10% of our volumes coming from UPI which was barely couple of percentage, about a year, year and a half back and the growth is there. While I agree with you is that if you look at the full customer segment, which is around 50 crore to 60 crore of people in this segment both rural — in rural India as well as rural and urban India, I would still say that maybe the top 20% around that percentage would be people who are migrating into or moving and adopting digital.

One should not forget that the younger age population, which is about 16, 17 who are getting into mainstream over the next couple of years are fully aware of the digital channels. We are in fact seeing Facebook, Instagram and have in fact received people on Twitter as well. So people are using social media, people are actually using YouTube and thanks to all the data, which has become available at cheap rate.

The usage of smartphones have substantially gone up, but I agree that not all 100% of the customers would be into digital foray, because digital is not about having a smartphone only, it is also about having cash in the bank and the comfort of doing digital transaction, but still I believe the top maybe 20% of the customers would have aspirations to get into digital and pay through QR and other services. So QR is something where we are also focusing quite a bit. We have also launched our QR based payments with select merchants as well in the last quarter or so.

So we are aware of the fact that not everybody but some portion and we come with the philosophy of the customer, making the final choice whether he wants to come to a merchant network or through a BPCL outlet or Fino branch or through a digital platform. So let us make all choices available to the customer and let him decide which is most convenient and easy for him.

Renish Bhuva — ICICI Securities — Analyst

Got it, got. Sir, just last question if I would may? Sir, our let’s say 60% of the business, which is the minority EPS and remittance. Sir, what is the outlook for FY 23 and if you can throw some light on the competition part in this product?

Ketan Merchant — Chief Financial Officer

Hi Renish, Ketan here. As earlier Rishi and I mentioned it off we have bifurcated our business into two parts. One is the transaction business and the legacy business, which we are running off and the other one is the growth drivers, which will enable us to have customer acquisition and put the cross-sell and everything else which Rishi earlier said into the foray for ’23, ’24. The growth drivers is clearly would be CASA and CMS. We’ve had some challenging times in terms of our micro-ATM and AEPS business, as you have seen. Remittance essentially because of the COVID year-on-year, it was back through.

The way we are looking at this business is what earlier we mentioned it off, if we have 2 to 2.5 crore customers coming on an offer, how we can convert this off. Are we looking at an exponential growth, a couple of years back, we know on a — these businesses had grown at a three digit percentage CAGR. We are not looking those kind of growth in any of these businesses. We are looking at a moderated kind of a growth between 15% to 20%. But the entire play will come, how we leverage those into other products or into the higher margin products which we are going into and thereafter create the base, which I — as I earlier said end of FY ’23 and ’24, the cross-selling of that will essentially start.

This is the same point which you earlier asked Renish. We are currently — the way we are investing into micro-ATM and AEPS business for sustenance and conversion, we are similarly doing it for digital as well. This is a year where we will invest into it and thereafter, all of these new products which we are looking at off can be used or can be sold to the customers, which we have built through both of these channels. So it is a channel. If I can sum up, it is a channel for future cross-sell and customer acquisition, and here customer ownership itself because of the subscriptions stroke annuity generates a profitability as well.

Renish Bhuva — ICICI Securities — Analyst

Got it. So in nutshell, but still these businesses can see around 15% kind of a growth in coming years and FY ’22 might be little unusual because of so many external factors, is that the correct assumption?

Ketan Merchant — Chief Financial Officer

Yeah, we have been facing some headwinds specifically into the micro-ATM thing as well. Here again, geographically each region is behaving a bit differently, but yes we are endeavoring to have a 15% kind of a growth not a substantial thing on the FY ’23 P&L but we are looking at how we utilize this for conversion, but yes some moderate kind of a growth is expected.

Renish Bhuva — ICICI Securities — Analyst

Okay. Okay. Ketan, thank you, and best of luck, Rishi.

Operator

Thank you. We take the next question from the line of Umang Shah from Kotak Mutual Fund. Please go ahead.

Umang Shah — Kotak Mutual Fund — Analyst

Yeah, hi, good afternoon. Thanks for taking my question. I just have a couple of them. Just taking cue from the previous question, so as Ketan already guided that for top three products which are almost two-thirds of our overall revenue pool, we are guiding for about 15% sort of revenue growth tops. Would we like to peg a number to what sort of overall topline growth are we looking at in FY ’23 and also the bottom-line growth in margins for FY ’23?

Rishi Gupta — Managing Director and Chief Executive Officer

Hi, Umang. I’ll just bifurcate this question into couple of parts. Yes, our legacy businesses will be growing at 15% to 20%, which I essentially just said. In the current scenario, are we essentially giving the guidance? I say, no, We’re not giving a guidance, how we are looking at. Are we looking at a substantial growth over this year? Yes, we are looking at the growth, which we had earlier mentioned as well in the CAGR target, which we have taken for ourselves over next three to four years.

As regards to margin. Yes, there is competition which is coming up. We expect to keep the margins largely, largely range bound. There will be some leeway which we still have, because we are at 32%. We will try and play anywhere between 30% to 32% is what we are looking at. In terms of product mix and growth drivers, the products which are constituting around 17% currently, which is CASA and CMS, there is where we are expecting an exponential growth.

Point to note is the margin out here on these products is also 40%. So net-net, we are looking at a customer acquisition spree and creating a platform without any sort of deviations from the overall long-term vision in terms of the PAT margin or the ROE, which we are looking at, but it will be a journey in terms of how do we go about there quarter-by-quarter and year-by-year.

Umang Shah — Kotak Mutual Fund — Analyst

Understood. Just one more thing, probably Rishi, if you could just help me on the strategy part, I mean why would we — we want to bifurcate our business as or maybe the larger parts of our business as legacy. I believe these were supposed to be our growth drivers and obviously, we were kind of building additional parts around these businesses, but let’s say, if you were to look at these businesses more like legacy businesses and newer businesses to dominate. If you could just help in that context maybe in two, three years how the overall revenue mix will look like? And which will be the dominant products at that point of time.

Rishi Gupta — Managing Director and Chief Executive Officer

So good question, in terms there is no legacy, there is maybe some communication gap. We are not saying there is a legacy business because we are just a five-year old company. So there is — as a bank, there is no legacy business. We were largely mature products, so products around AEPS and products around microATM, as well as the remittances. Remittances is a very old product.

AEPS saw a substantial growth in this — in FY’22. We expect that the growth will continue in FY’23 as well. Remittance is kind of in a stage where it has become mature and there you will see a relatively moderate growth from that point of view. MicroATM, again we are seeing a relatively moderate growth. One has to also realize the fact that the last couple of years have been off and on business, especially because of the COVID which has been there.

So some of the products may be able little differently in the next couple of years. Some may, who have matured, may see a moderate growth because they saw a substantially higher number in the last two years. So growth — good growth has already happened, so that’s where you can see moderate, so nothing like legacy business. From a strategy point of view, there is no change in the strategy per se. We continue to push on our products, which is your mature products as well as growth products and getting into foray into digital, where we can then over a period of time do cross sell and get into that business.

So if you’ve got an ambition that we are saying that the legacy business, and we are not focusing on that, I think pardon us for that, but it is more like mature products will see a more moderate growth, new products and growth products like CMS, CASA over a period will see a higher growth and we have seen substantial growth coming in digital products in the — in FY ’22 as well. So and we’ll continue to focus ourselves around those businesses. And for us remittances, microATM, AEPS bring a good footfall into our ecosystem which we are able to convert into other products and do cross sell on it.

Umang Shah — Kotak Mutual Fund — Analyst

Sure. And any targeted revenue mix broadly, maybe not exact numbers but broadly, do we think that these mature products and new products can become like 50/50 in next two years or?

Ketan Merchant — Chief Financial Officer

Umang, Ketan here. Umang we are looking at an exponential kind of a growth, which we are looking at. Currently, the new products approximately constitute around 17% and the other products which equally will grow. So it’s not that it’s not growing, but the rate of growth will be moderated of, so over next couple of years’ time we are intending to double the point of CASA and CMS, which is currently from 17% to making it to more than one-third of the total revenue, which we are looking at.

By that time the point to note which Rishi referred earlier also mentioned it of is in two year’s time there would be a — cross-sell also will become or the new product which we just mentioned off in the earlier script will also be coming into the foray and those are expected to also contribute in the — of higher single digits or just about double-digit over couple of years and more.

Umang Shah — Kotak Mutual Fund — Analyst

Understood. That’s helpful. And just last question is on our FD product. Just wanted to understand that is this going to be distribution of FDs of other banks or this would be our own fixed deposits where customers can park their money for a longer period of time at higher interest rates?

Rishi Gupta — Managing Director and Chief Executive Officer

So it’s a referral product. So for us we have tied up with sort of the small finance bank and their FD will be sold through our merchant network and we will get a cross-sell income on that or a referral income on that.

Umang Shah — Kotak Mutual Fund — Analyst

Okay, understood. And sorry, just one data point for FY ’22, what was our overall cross-sell income that we would have earned maybe on loan cross sell or maybe cross sell of any other third-party distribution products.

Ketan Merchant — Chief Financial Officer

So Umang, cross-sell is a journey which we’re just starting off. So there is nothing material. We did some pilot kind of a rule in FY ’22 for loan referral, but those were very insignificant number. In fact as Rishi just said, it’s maybe two quarters distance wherein we start having some sort of a material number coming up and we do a full-fledged kind of a rule out. So cross sell is something which will begin in significant and material manner at the earliest in end of FY ’23 that is the earliest.

Umang Shah — Kotak Mutual Fund — Analyst

Understood. All right. Okay. This is helpful. Thanks and good luck.

Ketan Merchant — Chief Financial Officer

Thank you, Umang.

Operator

Thank you. We take the next question from the line of Nitin Agarwal from Motilal Oswal Securities Limited. Please go ahead.

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Yeah, hi. Am I audible?

Rishi Gupta — Managing Director and Chief Executive Officer

Yeah, Nitin go ahead, please.

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Yeah, hi. Ketan and Rishi. Congratulations on good results and achieving the milestone of INR1000 crore revenue this year. I have three questions. First is like we have 131 partners and CMS. So how do you assess the penetration level with these partners? And of the total throughput of INR24,000 odd crores that we have clocked in FY ’22, how much will be coming in from the top — say the 10% of these partners? That’s one and maybe I can take as we go along here.

Rishi Gupta — Managing Director and Chief Executive Officer

So out of 131 as I mentioned banks, MFIs, and — banks, MFIs and NBFCs were about 96% of our total volume as of March ’21, which have come down to about 70%. Not that their volume has come down that — that we have expanded quite a bit on the CMS side. So from that point of view, I would say our penetration, especially on the NBFCs and the MFIs — in top 10 NBFC and MFI is quite high, which means that we are mostly with all the top 10 NBFCs and MFIs. Percentage variation would be between anywhere between maybe 5% to 30% of the overall business comes through the Fino platform.

So there is still a good headroom for us to grow in — not only in the fact that we are adding more clients and getting into new industries, but within the clients also we expect that we will be able to grow with existing clients as well as the penetration goes up and especially like — for companies like e-commerce companies or logistics companies, we have started to do business. There are penetration as we started only last year, is substantially low compared to the overall potential which is there.

So there we will see a higher growth to come, which will also mean that we are diversifying into multiple industries and de-risking ourselves from couple of industries like we saw during COVID, the NBFCs and MFIs had a tough time, which also resulted in some of our CMS numbers coming down, but then it improved as the COVID settled down. So de-risking strategy, adding more clients, becoming the last mile connect for all kinds of cash and transactions on the ground is the USP, which we have built and that is something which is much appreciated by customers across the country and between the top 10, I think we are there with almost everybody, penetration could be between 5% to 30% of that.

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Sure, Rishi. The other question is like how should one see the growth in the micro-ATM business? Is the growth here getting cannibalized by AEPS and should therefore one see at both the segments together versus the growth trends?

Rishi Gupta — Managing Director and Chief Executive Officer

Yeah, partly you’ve answered the question. Also, you are right. Actually see what is happening is that all the cash options which are available to the customer on the ground is being used, so not only the fact that AEPS is growing at a higher rate than the micro-ATM because of the government push also on Aadhar ecosystem and it’s a very safe ecosystem where people can just use the biometric to withdraw.

Other factor is also that microATM, the numbers which we typically present our offers numbers, which are micro-ATM transaction done for other customers. As you can see, we are also converting some of the customers into CASA, so they have become our own customers, so part of that cannibalization of that number is also happening where people use our own platform, which we don’t report separately because that’s part of the CASA business which we do, is being cannibalized from micro-ATM to our own customers, but at a much higher revenue and a much higher margin per se.

So we are not — while we are not that happy with the fact that the microATM market contrary to what we expected would be growing, we are seeing some kind of a plateauing happening on that side. But we’ll have to wait for few more quarters to understand how much the market will grow overall basis. But just some cannibalization with multiple options coming up through APIs, through Fino, own customer accounts as well as branch and ATM network now becoming fully operational post COVID period could be the reason why we are seeing that plateauing coming up on the microATM side.

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Right. And lastly like a — the debit card spends on a per transaction basis is quite healthy at INR2700 odd. So what is driving this? What are the categories wherein the customers are spending and does this not look high in context with the average balances because majority of the customers are not maintaining even INR500 of balance. So what is really like the disconnect. Am I reading this right?

Rishi Gupta — Managing Director and Chief Executive Officer

Yeah, actually the customer balance has substantially gone up in the last one year from around INR750 odd it has gone to INR1100 as such. So not only with the fact that and we crossed more than INR500 crores of savings account balance as such. So the usage is being driven, the — see we are a bank — we because — see our business is not on balances only, our business is a transaction platform. So lot of people put money and they use the money for making debit cards and payment as well as transfer out. So debit card spends are growing up. The balances have also growing up.

We are largely seeing people using debit cards for fuel and grocery payments largely and we have in fact have seen that during this IPL, a lot of people actually use the Fino platform also for playing on that IPL ecosystem. So debit card spend, I don’t think so there is any disconnect between the balance as well as in terms of the usage. The usage is something which we are driving as such also the fact that the number of customers have grown up — gone up, that is also leading to a growth in the total throughput on the debit cards. Ketan, you want to add.

Ketan Merchant — Chief Financial Officer

Yeah, Hi Nitin, just some factual point. Our average balances in our customer accounts. I heard you having us lower number, but it was INR750 in FY ’21 and as we speak in FY ’22 it is anywhere in the range of INR1,100 plus. So average balances are substantially grown. Second aspect if you see on our balance sheet as well our deposit balances have been. This is the end-to-end period to period have also doubled. So the way we are essentially doing it while transaction is an important aspect what we are doing it off how he spends and how we make him spend and how we get him to operate on our platform is something which our analytics team is essentially working on. Along with this, as the number of accounts are increasing it off, the spend is increasing, the average balance also is going in the same direction with the numbers, which I just said.

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Okay. Sure. Maybe I got the slide 42 wrong wherein average balance of INR447, so I thought maybe 46% of the customer are having [Speech Overlap]

Ketan Merchant — Chief Financial Officer

No, that is analytics like. [Speech Overlap].

Rishi Gupta — Managing Director and Chief Executive Officer

That is about, that is about our analytics, which we are saying it off that anyone who has a balance of more than INR447 what will be his renewal propensity. So we’ve just broken out by each segment of balances. So this only slide speaks about that. The average balances are what I just said, maybe from 750 to 1,100 plus in from 2021 to 2022. This is more from the analysts.

Nitin Agarwal — Motilal Oswal Securities Limited — Analyst

Sure. Got it. Thanks. Thanks Rishi and thanks Ketan.

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you Nitin.

Operator

Thank you. We take the next question from the line of Nishit Master from Axis Securities. Please go ahead.

Nishit Master — Axis Securities — Analyst

Yeah. Thank you, sir for the opportunity and congratulations on the amazing set of numbers. My first question is relates to the recent changes in the Independent Directors of the Bank. So we’ve seen two Directors completing the tenure and the first term in office and now we seek the change in Directors. So is this policy of independent directors only being given one term new for the Bank or its end policy which has been followed since some time now?

Rishi Gupta — Managing Director and Chief Executive Officer

So this is good Nishit you asked that question because that is something which has been in the press over the last couple of weeks, and unfortunately it is blown out of proportion. So what exactly happened is that at the bank level process of renewal of term of Independent Director was followed and after the Bank Board cleared it, it was sent to the shareholders for approval.

And you know our shareholder, which is our holding company owns 75% and plus so they had their — in that — the agenda was there and they had some other agendas also where some other renewals of other Board members who are also coming up and the HoldCo decided that we should only look at one term across the group rather than giving longer terms or two terms because it’s a growing company, we need to bring in more talent and we need to bring in diversity as well. So from an overall evolving environment and with the group as a whole is functioning tenure of Independent Director should be restricted to one with — they got implemented across the group.

And unfortunately, because some of our Independent Directors were coming up for renewal this happened for us at that point of time. Otherwise, if this would have been the case earlier, the bank would not have recommended a second term itself. So that is the — there is nothing much — there is nothing more than that. In fact, I would just do a follow-up on that, it’s that we have a notable board and their contribution on the overall steer as well as governance is impeachable.

But however, the business is run by independent professionals like us, and hence on a business front it may not be — not have any material impact in the medium or even with the long-term perspective. We are working on getting replacements for the two Independent Directors over and we will do it over a period of time as we are in the selection process and that will be done, and we’ll keep this in mind that will need to give only one term in future. So there is nothing more than that on this.

Nishit Master — Axis Securities — Analyst

Thank you, sir. Thank you for the clarification. And sir, just the next question is on the business. So, we are also now targeting international remittances. Do we plan to have physical presence in places where the remittances originate?

Rishi Gupta — Managing Director and Chief Executive Officer

So this is similar to what Shreya was asking us in the beginning and we already have deep presence in Punjab, Gujarat, parts of Bihar, UP, Kerala.

Nishit Master — Axis Securities — Analyst

There the remittance will ultimately go to, but origination will happen somewhere in UAE or?

Rishi Gupta — Managing Director and Chief Executive Officer

No, we have — we’ll probably go with the tie-up with agencies like the one which we said on the MTSS. We are also looking at tying it with some more. So we will not have presence in U.S. or UAE or Singapore for that matter. We are just focusing on India and because of our — will gradually go through exchange houses and because of our presence — deep presence across the country and ability to handle cash as well as open an account, there was a study which was done by some of the IR companies that nearly 40% to 50% of the money actually people withdraw it and put it into the bank they don’t consume it directly.

So our ability as a payments bank to not only our cash withdrawal but also open an account for the customer and then lead to a higher usage and cross-sell is something which we are focusing on when we look at IR per se. IR I would say is a start of a journey, it’s a big business, it’s a profitable business, and it’s a very competitive business which is there, but because of our engagement on the ground and our ability to handle cash gives us a edge over other players who would be looking at jumping into this business

Nishit Master — Axis Securities — Analyst

Great. Sir, thank you so much and best of luck.

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We take the next question from the line of Nikhil Agarwal from VT Capital. Please go ahead.

Nikhil Agrawal — VT Capital Market Private Limited — Analyst

Thank you so much, sir for the opportunity. Good afternoon and congratulations on the amazing set of numbers. So I just have a fundamental question with regard to subscriptions and renewals on CASA. So with — so the kind of tariff estimate that we have, we have to pay a subscription fee to avail CASA services which we could have at some other place free of cost, so the main convenience is that there is a [Indecipherable] where a merchant acts as a banker. So my question is once — this has been mentioned in Business House as well, since we go up on educating them on how banking works and how the FinoPay app works as well, once they are aware of the entire system what stops them from not paying subscription and just switching to other bank’s CASA system or some other type of system? So what is the growth driver of the renewal? Is it just the convenience or any other right?

Rishi Gupta — Managing Director and Chief Executive Officer

So, multiple things which are there, our ability to be present in every nook and corner of the country where we have more than 93% to 94% of the districts we are covering, we added nearly 3.5 lakh merchants last year. Our journey to continue to add more merchants is there. We have already started to getting into digital and giving customer the choice to come physically or digitally to do Fino platform. Multiple things which is important is from a customer point of view is his ability to digitize cash, his ability to download the app and do transactions on it, and the third is the grievances handling or if there is a problem where do you go and solve that issue and that is where Fino has an edge over everybody else.

If you would look at all the digital companies, none of them have any physical presence and if you have to connect to them, you have to connect through IVR or through email or chat bots and other means which are largely very tech-heavy and tech savvy index kind of tools. Our customers are not that tech-heavy and tech-savvy, so we need to provide them more through which they can transact. So, my personal belief is because of the deep trust and the deep presence which Fino has and the ability to do transactions — micro transactions in a very — very seamless with higher volumes at an affordable price is something which is — has over what other people who would get into a digital business as such. So subscription will continue to grow that is my belief as the number of accounts are also increasing and our edge over everybody else through the figytal model will stand out.

Ketan Merchant — Chief Financial Officer

Nikhil just to substantiate it further, the question which you made is pertinent and Rishi gave a strategic answer as well, if I just come to the numbers, earlier referring to slide 42, wherein you know we are into the third year. In this case as you see person is evolving with us. Yes. We are also taking into the technology platform, but in certain cases the renewal is as high as 87%. I think just to put things in perspective. When we are taking subscription, we are not the balance sheet based business. Balance sheet is an incidental aspect of our profitability. So, we do not in emphasize on any minimum balances.

We do not require minimum balances. So we do not charge the customer for SMS or any other monthly charges which it comes to. So on an overall basis whether we look at subscription or the relevant customer getting equal services. Lot of times in the large banks, he has to spend four to five hours, three to four hours rather to get the right kind of services which he can get at a merchant. So from a differentiated perspective is the cost or is it coming to large for customer as he evolves into his thinking pattern or digital, he will not give it off.

The analytics or the current three-year data point, which we have does not support that, it is supporting that, yes, as long as you are giving the right kind of services transparency and making it reasonably competitive, he will continue on our platform. Everything else in terms of what else can be done, I think Rishi already covered up, I thought, I’ll just give a perspective in terms of number and the competitive landscape as well that why this guy or renewal rates are what they are currently.

Nikhil Agrawal — VT Capital Market Private Limited — Analyst

Right, that is very helpful. Just one follow-up question sir. With regard to mATM and AePS. As we mentioned earlier that we still have to see how this growth in the coming few quarters. And these are the growth drivers for CASA subscription so apart from maybe mATM and AePS are there other things conversion into [Indecipherable]?

Ketan Merchant — Chief Financial Officer

Yeah, Nikhil. I think, in one of the slide, which we’ve also mentioned it off that Remittance also is a point, wherein convergent can essentially happen. I think just to take a step back just clean it off. We have this offers customers, other bank customers who come to our point for various services. Our merchant will essentially work with him and it’s a process over next three to four visits. He will try and explain the benefit and then convert, so MicroATM, AePS and Remittance which are our matured business, which are generating the footfall other ones, which will be generating. Besides the digital platform which Rishi just said there will be a channel over next year or more that will also generate a material number in terms of the ownership.

Nikhil Agrawal — VT Capital Market Private Limited — Analyst

Alright. Thank you so much, sir. And best of luck for future growth.

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you Nikhil.

Operator

Thank you. We take the next question from the line of Renish Bhuva from ICICI Securities. Please go ahead.

Renish Bhuva — ICICI Securities — Analyst

Yeah, hi, sir. Just a couple of data keeping questions. So on the new CASA account opening side, what is the monthly run rate?

Ketan Merchant — Chief Financial Officer

So the new accounts, which are coming, Renish, we are opening anywhere in the range of around 2.25 lakhs accounts.

Renish Bhuva — ICICI Securities — Analyst

2.25 lakhs accounts. Okay.

Ketan Merchant — Chief Financial Officer

Yeah, new accounts.

Renish Bhuva — ICICI Securities — Analyst

New accounts yeah, and what is the CMS throughput per month now?

Ketan Merchant — Chief Financial Officer

CMS throughput, which we are looking at is anywhere in the range of around 3,000 crores a month, on a monthly basis.

Renish Bhuva — ICICI Securities — Analyst

Sorry, Ketan, I can’t hear you.

Ketan Merchant — Chief Financial Officer

Yeah Renish, am I audible now?

Renish Bhuva — ICICI Securities — Analyst

Yes.

Ketan Merchant — Chief Financial Officer

Yeah. So CMS throughput, we are looking at some around 3,000 crore throughput on a monthly basis.

Renish Bhuva — ICICI Securities — Analyst

Okay. And this both data point as on March.

Ketan Merchant — Chief Financial Officer

Yes.

Renish Bhuva — ICICI Securities — Analyst

As on March. Okay, that’s it from my side. Thank you Ketan.

Operator

Thank you. As there are no further questions. I would now like to hand the conference over to Mr. Rishi Gupta for closing comments.

Rishi Gupta — Managing Director and Chief Executive Officer

Thank you. Thank you Diksha for arranging this call and thank you, everyone, who have participated onto this call and I hope all your questions have been answered. If there are anything we will be more than happy to take it offline and with the team. As you can see Fino is on a growth trajectory with 28% growth in FY 22 over 21, processing more than thousand crores of top line and more than doubling of profit as such. We are adding more products and we are adding more customers and that is what we believe which help us in getting to our digital journey as well. So we will be — with this we will end the call and we will be more than happy to take any questions offline. Thank you.

Operator

Thank you. Thank you for attending the conference call. If you have any further queries please send an email to sayantan.mitra@finobank.com or gaurav.g@conceptpr.com. On behalf of Fino Payments Bank Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.