Slice Small Finance Bank has achieved monthly profitability and is aiming to finish FY26 with positive results, according to reports.

Reports claim that the institution, which emerged from an unexpected merger between fintech Slice and North East SFB a few months ago, is well-capitalized and has no plans to seek additional funding.

Currently, the priority is to establish a nationwide presence utilizing low-cost digital channels, and the bank is not considering further mergers, reports indicated, mentioning that it might explore transitioning to a universal bank within the next five years.

Before the merger, North East SFB had recorded a loss of Rs 441 crore, while Slice was also facing deficits.

The bank is sufficiently capitalized, and the profit will further reinforce its financial buffers. According to recent media reports, the bank was planning to raise as much as USD 300 million in capital.

The bank is adding approximately 3 lakh new accounts as a result of its digital initiatives, Bajaj noted, highlighting that its savings bank interest rates align with the RBI's repo rate, while fixed deposit rates are slightly higher, which aids in attracting customers.

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The rate of new account openings ranks among the fifth or sixth fastest in the sector and is competitive with much larger competitors, he stated.

Regarding lending, the bank offers consumer credit, including unsecured personal loans and business loans, which encompass loans against property, emphasizing its commitment to assist individuals who may be underserved by traditional banking systems.

In pursuit of a significant expansion in both borrowers and its loan portfolio, the bank introduced a UPI-based credit card on Saturday, with Bajaj noting that over 30 crore UPI users represent a substantial potential customer base for this product.

The bank stands to earn an interchange of up to one percent depending on the location where the credit service is utilized and will also generate revenue from rollovers and fees, he indicated.

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Bajaj mentioned that its personal credit division has been capable of providing loans at a cost that is one-tenth that of the industry due to digital efficiencies, and added that its credit costs are also 30 percent lower than the average within the sector, thanks to the diligence provided by its analytics engine.

Additionally, the bank has launched a 'UPI-powered bank branch' in Bengaluru, which is accessible to customers from any bank for various transactions, including cash deposits into any account via cash-accepting machines and remitting money to any mobile number, Bajaj explained.