Mumbai, June 30 -- 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 via prepaid payment instrument (PPI) wallets after the Reserve Bank of India's June 2022 circular. This effectively shut down Slice's popular card offering, which had gained traction among younger Indian users. Following its 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. Slice saw its revenue surge in FY23, reaching Rs.847 crore, a threefold increase compared to the previous year. However, this growth was accompanied by a significant rise in losses, reaching Rs.406 crore, a 59.8% increase from FY22. Mint could not access Slice's FY24 financials. North East Small Finance Bank's net loss narrowed to Rs.152.7 crore in FY24 from Rs.213.1 crore in FY23, as total income fell to Rs.251.3 crore from Rs.315.3 crore. From FY25, the two will report combined financials. 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 declined other applications for banking licences, including that of Navi, making Slice's route-via 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 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."...