Fino payments Bank – Can the unique business model spring a surprise?

Fino has corrected from its highs of 360 to around 270 rs now and looking attractive now. In a recent interview Link here the management mentioned that they expect the CASA + CMS revenue contribution to grow from 30% currently to 40% in next 12-18 months. And aspire to continue adding 9 lakh casa account every quarter and take the total casa accounts to 2cr from current 91 lakh. In the process of applying for SFB license. May take 2.5 years to finish the process

My KTAs

Higher CASA would lead to good recurring income from renewal.
CASA and CMS being the most profitable businesses, the profit margins would rise as the revenue share from these grows.

While above points are +ves, current tax rate is zero as there are accumulated losses. But once the accumulated losses are surpassed, the tax rates would be normal (I’m considering ~26% but not sure.)

Disc : Invested and biased