Latest news with #Slice
Economic Times
9 hours ago
- Business
- Economic Times
Slice SFB aiming to close FY26 in the black; not looking to raise any capital
Slice Small Finance Bank has turned profitable on a monthly basis and is aiming to close FY26 in the black, a top official has said. The entity, which came out of a surprising merger between the fintech Slice and the North East SFB a few months ago, is adequately capitalised and not looking to raise any capital, its executive director Rajan Bajaj told PTI. The current focus is to build a pan-India business using the low-cost digital channels, and the entity is not interested in any more mergers, Bajaj said, adding that it may look at transitioning to a universal bank in the next five years. Before the merger, the North East SFB had reported a loss of Rs 441 crore, and Slice was also reporting losses. "We have turned profitable post-tax on a monthly basis and will close the year in profits," Bajaj said. The bank is adequately capitalised and the buffers will also be supported by the profits, he added. As per recent media reports, the bank was aiming to raise up to USD 300 million in capital. It is adding up to 3 lakh new accounts to its base on the back of digital journeys, Bajaj said, pointing out that the savings bank interest rate offering is at par with the RBI's repo rate and the fixed deposit offerings are a notch higher, which is helping in attracting customers. The pace of account opening is the fifth or the sixth fastest in the industry and at par with much bigger rivals, he said. On the lending front, it does consumer credit including unsecured personal loans and business credit which includes loans against property, he said, stressing that the focus is on serving people who may be underserved by the banking system. Aiming for a big increase in its borrowers and loan portfolio, the bank launched a UPI-based credit card on Saturday, Bajaj said, pointing out that over 30 crore of UPI users can be the potential target audience for such an offering. The bank stands to make an interchange of up to 1 per cent depending on where the credit facility is availed, and will also make revenues from rollovers and fees, he said. Bajaj said its personal credit vertical has been able to deliver credit at a cost which is a tenth of the industry courtesy digital inputs, and added that the credit costs are also 30 per cent lower than the industry average because of the analytics engine which is used for diligence. The bank also launched a 'UPI-powered bank branch' in Bengaluru, which can be used by any bank's customers for a slew of transactions, including cash deposits into any account using cash accepting machine, and then remitting the money to any mobile number, Bajaj said.
Mint
10 hours ago
- Business
- Mint
After years of burn, Slice looks to turn profitable in FY26
Three years after a regulatory crackdown disrupted its core business, fintech startup Slice says it has turned profitable on a monthly basis and is targeting full-year profitability in FY26. The turnaround follows its transition into a regulated bank after its final merger with North East Small Finance Bank (NESFB) in October 2024. Slice was among several fintechs forced to stop offering credit line offerings via prepaid payment instruments (PPI) wallets after the Reserve Bank of India's 2022 circular. This effectively shut down Slice's popular card offering, which had gained traction among younger Indian users. Following its acquisition and merger with NESFB, Slice has stabilised its operations, consolidated assets, and transitioned into a deposit-funded, digital-first bank, founder and executive director Rajan Bajaj told Mint. 'We are now PAT-positive on a monthly basis. That was a milestone we had set for ourselves after the merger, and we have been able to achieve it quite early," Bajaj said. However, the small finance bank has not yet disclosed audited financials for FY24, and the profitability target remains based on internal metrics. Slice saw its revenue surge in FY23, reaching ₹847 crore, a threefold increase compared to the previous year. However, this growth was accompanied by a significant rise in losses, reaching ₹406 crore, a 59.8% increase from FY22. 'We have converted into a public entity now, we just haven't listed yet," Bajaj said. 'As a bank, you have to list after a certain point. We want to do that in the next 3–4 years." Full banking status Slice's evolution from a non-bank lender into a full-stack bank comes at a time when several fintech peers are still grappling with regulatory headwinds. The RBI has turned down other applications for banking licences, including that of Navi, making Slice's route—via the merger with an existing bank—an exception. With NESFB's licence, Slice has access to core banking infrastructure, the ability to raise retail deposits, and offer regulated credit products. 'We've converted into a public entity, we just haven't listed yet," he said, noting that banks are required to go public after a certain point. Slice aims to list within 3–4 years. According to Bajaj, the bank is onboarding approximately 3 lakh customers per month since October and claimed the bank has doubled its deposit base post-merger, though the actual value of deposits was not disclosed. One of Slice's key products is a repo-rate-linked savings account, which passes on 100% of the prevailing repo rate to depositors. Interest is calculated daily and credited directly to users' accounts. 'Most banks don't give the full repo rate to customers. They offer 2.5–4%. We're changing that," Bajaj said. This comes at a time when the RBI's third consecutive rate cut, bringing the repo rate to 5.5% in June, has prompted banks to reduce FD interest rates, impacting deposits. UPI-linked credit card Slice is betting big on a UPI-linked credit card aimed at India's 300 million underserved but credit-worthy users. 'We think the credit card product is going to get redesigned for India, just like payments got redesigned in the last 10 years," Bajaj said. The product allows users to make QR code-based UPI payments using their approved credit limit. Bajaj said about 5 million users have accessed Slice credit so far, and half of them were new-to-credit customers. Earlier this year, NPCI chief Dilip Asbe underscored the push to onboard an additional 200–300 million users to UPI to 'break their cash memory," pointing to the potential size of the addressable market. Digital branchesSlice has opened its first UPI-led digital bank branch in Bengaluru's Koramangala, featuring a Slice-branded UPI ATM that allows cardless cash deposits and withdrawals using any UPI app. 'You don't have to carry your debit card. That's a relic of the past," Bajaj said. While banks like SBI and Hitachi have previously piloted UPI ATMs, Slice plans to scale aggressively with installations across 600 districts, including rural areas. Bajaj noted that earlier pilots suffered from low visibility and uptake. Slice primarily competes with other small finance banks and potentially traditional banks in the digital banking space, apart from other credit card players in fintech. The bank is also expanding into merchant-facing infrastructure, such as current accounts, QR-code-based collections, and faster settlement cycles, in a bid to become the primary digital bank layer for UPI users. 'To build a true UPI credit card ecosystem, you have to solve the problem end-to-end, for both consumers and merchants." On future fundraising, Bajaj said Slice is not actively seeking external capital at the moment, citing strong deposit inflows and capital adequacy. 'We're not doing any formal discussions right now. But as and when we need capital, we will raise," he said. Since its inception in 2016, the company has raised close to $342 million in multiple funding rounds from investors such as 360 One, Insight Partners, and Tiger Global Management, among others.
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Business Standard
12 hours ago
- Business
- Business Standard
Slice SFB aiming to close FY26 in black, not looking to raise any capital
Slice Small Finance Bank has turned profitable on a monthly basis and is aiming to close FY26 in the black, a top official has said. The entity, which came out of a surprising merger between the fintech Slice and the North East SFB a few months ago, is adequately capitalised and not looking to raise any capital, its executive director Rajan Bajaj told PTI. The current focus is to build a pan-India business using the low-cost digital channels, and the entity is not interested in any more mergers, Bajaj said, adding that it may look at transitioning to a universal bank in the next five years. Before the merger, the North East SFB had reported a loss of Rs 441 crore, and Slice was also reporting losses. "We have turned profitable post-tax on a monthly basis and will close the year in profits," Bajaj said. The bank is adequately capitalised and the buffers will also be supported by the profits, he added. As per recent media reports, the bank was aiming to raise up to USD 300 million in capital. It is adding up to 3 lakh new accounts to its base on the back of digital journeys, Bajaj said, pointing out that the savings bank interest rate offering is at par with the RBI's repo rate and the fixed deposit offerings are a notch higher, which is helping in attracting customers. The pace of account opening is the fifth or the sixth fastest in the industry and at par with much bigger rivals, he said. On the lending front, it does consumer credit including unsecured personal loans and business credit which includes loans against property, he said, stressing that the focus is on serving people who may be underserved by the banking system. Aiming for a big increase in its borrowers and loan portfolio, the bank launched a UPI-based credit card on Saturday, Bajaj said, pointing out that over 30 crore of UPI users can be the potential target audience for such an offering. The bank stands to make an interchange of up to 1 per cent depending on where the credit facility is availed, and will also make revenues from rollovers and fees, he said. Bajaj said its personal credit vertical has been able to deliver credit at a cost which is a tenth of the industry courtesy digital inputs, and added that the credit costs are also 30 per cent lower than the industry average because of the analytics engine which is used for diligence. The bank also launched a 'UPI-powered bank branch' in Bengaluru, which can be used by any bank's customers for a slew of transactions, including cash deposits into any account using cash accepting machine, and then remitting the money to any mobile number, Bajaj said.
Time of India
a day ago
- Business
- Time of India
Slice Reimagines Credit Access with UPI-Linked Card
Mumbai: Slice has launched the slice UPI credit card, aiming to integrate formal credit seamlessly into India's dominant UPI payment system. Designed to work like any UPI transaction, the card eliminates the need for physical swipes or cards, offering features like cashback and interest-free EMIs. However, Slice's broader ambition lies in reimagining India's credit infrastructure, not just introducing a new card. Following its merger with North East Small Finance Bank, Slice now operates as a full-fledged bank with complete control over its technology stack, including core banking systems and credit underwriting. The bank on Saturday, opened its first digital-led branch in Bengaluru with the first of its kind UPI ATM. The new ATMs enable withdrawals and deposits using a QR code, eliminating the need for a physical card or account number. Users can scan a QR code at the machine to withdraw cash from any bank account or make deposits, even without entering account details. Slice intends to deploy hundreds of these ATMs across the country in the coming years to ensure broad access. Rajan Bajaj, founder and executive director of Slice, said the bank's goal is to reshape India's credit landscape by extending access to 130 million credit-worthy but underserved citizens. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CLASS Hosts International Forum CityU Learn More Undo 'The traditional credit card model was largely unchanged for 75 years since its inception in America. This needs to be redesigned for India to be able to service 300 million of our citizens who are credit worthy.' He emphasized the role of mobile in this transformation: 'The interface of serving this credit is mobile. But the fundamental source of the money still remains credit.' Slice's experience with new-to-credit customers gives it an edge, with Bajaj noting, '50% of those customers being new to credit… who really understand the credit risk of these customers where small ticket sizes are relevant.' Bajaj added that Slice's credit model has 'performed 30% better historically than the market,' making it ideal for reaching underserved segments at scale. He pointed out how UPI simplifies credit disbursement by enabling approval 'at the point of transaction,' removing the need for physical credit cards: 'The physical one just can be a physical like virtual card.' According to him, most co-branded cards focus on the same group of 40–50 million users, whereas Slice aims to go beyond: 'For the 300 million credit-worthy individuals in India, access to a credit card would be a game changer for them. ' Bajaj sees this shift as transformative, comparing it to UPI's rise over the past decade: 'We think UPI credit card is that same moment for India… ten years from today it'll be like one of the biggest moments of UPI unlocking credit for the entire economy.' A key differentiator is Slice's ability to underwrite customers who were previously excluded. Bajaj claimed their Customer Acquisition Costs are '10 times lower than traditional banks,' thanks to a mobile-first approach and strong word-of-mouth. This enables Slice to offer credit to a much broader customer base and across more merchants: '60, 70 million merchants' versus '5, 6 million merchants' in the traditional credit card system. The average transaction size is expected to fall from ₹2,500 to smaller amounts, making it 'more relevant for this large 300 million population of India that's credit worthy.' Transparency is also central to Slice's offering. Bajaj emphasized the need to give users control over repayments: 'People can control the way they are paying… if they want to roll over, this is the extra interest that they'll end up paying.' The card includes a 'flagship 3 months free installment' feature, allowing users to convert purchases into equal payments: 'Instead of 90 days one shot, you are getting 1667 rupees for three months… in this cycle, next month cycle and then the next next month cycle. ' Beyond credit cards, Slice is expanding its banking model. While continuing with loans like personal and SME credit, it is focusing on scalable digital products. Bajaj sees Slice's future as rooted in financial inclusion. With half of its customer base being new to credit, the bank is focused on serving '130–140 million Indians who are not even eligible for formal credit today.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
Slice Small Finance Bank turns profitable on monthly basis; targets IPO in 3–4 years
Synopsis North East Small Finance Bank had reported a Rs 441 crore loss in FY24. Slice was also in losses at a consolidated level. But as a bank, the company hopes to run profitably through FY26.
