Shares of RNFI Services Limited, a micro-cap company offering banking, digital, and Government-to-Citizen (G2C) services, surged over 13 percent on Monday following its appointment as a Corporate Business Correspondent for Jio Payments Bank for 5 years.
Price Movement
During Monday’s trading session, RNFI Services Ltd’s share price surged 13.5 percent, reaching an intraday high of Rs.169.80 per share from its previous close of Rs.149.60 apiece. The price has since retreated to Rs.166.00 per share.
What happened
RNFI Services Limited has entered into a 5-year agreement with Jio Payments Bank Limited, becoming a Corporate Business Correspondent. As part of the agreement, RNFI Services will provide a range of services, including identifying potential customers, raising awareness about savings and other products, and processing applications.
The company will also facilitate various banking transactions such as account opening, cash deposits and withdrawals, and cash management services for businesses.
Additionally, RNFI will enable banking transactions through AEPS, Aadhaar Pay, and Bharat Bill Payment Systems, ensuring compliance with applicable laws. The agreement also covers services like interbank and intrabank Aadhaar-to-Aadhaar remittances.
Products and services
RNFI Services offers a range of key services, including domestic money transfers, Aadhaar-Enabled Payment System (AEPS) transactions, and micro ATM services in remote areas.
The company also facilitates utility bill payments, travel bookings for railways and airlines, PAN card services, and income tax return (ITR) filing, ensuring efficient and accessible solutions for its customers.
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Key Business Partners
Key business partners of RNFI Services include Bajaj Finserv, SBI, ICICI, Tata AIG, Bank of Baroda, HDFC Bank, Axis Bank, Kotak Mahindra Bank, along with insurance companies like Reliance General Insurance and Max Life Insurance.
Financial Performance
RNFI Services Limited’s revenue has increased from Rs. 527 crore in H1 FY24 to Rs. 428 crore in H1 FY25, which has down by 13.04 percent. The net profit of RNFI Services Limited has also grown by 50 percent, from Rs. 6 crore in H1 FY24 to Rs. 9 crore in H1 FY25.
RNFI Services Limited’s revenue and net profit have grown at a CAGR of 62.53 percent and 9.33 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 30.2 percent and 39 percent, respectively. The debt-to-equity ratio of the company is to be 0.22x, which shows the company is almost debt-free. RNFI Services Limited’s EPS is to be Rs. 5.84.
Company Profile
RNFI Services Limited, founded in 2015 and based in India, is a financial technology (fintech) company focused on delivering a variety of banking and digital services to promote financial inclusion, especially in rural areas.
The company operates through B2B and B2B2C models, providing services through its online portal and mobile application.
Written by – Nikhil Naik
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