New Delhi, Dec. 6 -- Fino Payments Bank, the first payments bank to receive an in-principle nod from the Reserve Bank of India (RBI) to transition into a small finance bank (SFB), is gearing up for a strategic shift that will expand its current business model significantly.

The transition will be a cautious one with a focus on secured lending, primarily loans against property (LAP), affordable housing, and, to some extent, gold loans, managing director and chief executive officer Rishi Gupta told Mint in an interview. Unsecured lending will be strictly limited and targeted, he added.

Following the RBI's approval on Friday, the bank will look at a higher proportion of secured assets as compared to unsecured assets, adding that it is not ...