# Slice CEO Rajan Bajaj: Banking Licenses Are Essential for Digital Success Rajan Bajaj argues that India's digital banking future requires full licenses, not fintech distribution. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-18 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/82f5e3b1-72b0-4ed0-b3b2-1e312a64a06d ## The Shift to Licensing Rajan Bajaj, CEO of Slice Small Finance Bank, asserts that India's equivalent to Revolut or Nubank will emerge from licensed banks rather than pure-play fintech distributors. Following the October 2024 merger with North East Small Finance Bank, Slice transitioned into a regulated entity to control its core banking infrastructure and customer acquisition strategies. ## Operational Efficiency Strategy Slice aims to compete against traditional banking inefficiencies by leveraging proprietary technology. The company spent three years developing its core banking system and in-house video KYC processes using AI agents. This vertical integration allows for faster product iterations and reduced reliance on third-party vendors, ultimately lowering the cost of serving each customer. ## Deposit Growth Dynamics The transition to a bank has significantly bolstered Slice’s deposit base, which more than doubled to ₹5,132.6 crore by March 2026. Savings deposits nearly quadrupled during FY26, supported by a 5.5% interest rate strategy. This shift reduces reliance on external borrowings, which declined from ₹1,139.5 crore to ₹822 crore over the same period. ## Transparency in Savings Rates Bajaj highlights a competitive advantage in transparent interest offerings. While some banks advertise high rates that only apply to specific balance thresholds, Slice credits its 5.5% annual rate daily on the total balance. This approach is designed to build trust and attract a loyal retail deposit base, distinguishing the firm from competitors. ## Merchant Banking Expansion Launched in November 2025, the Slice business app provides merchants with current accounts, QR codes, and collateral-free loans up to ₹10 lakh. By March 2026, merchants processed ₹6,000 crore in payments. Slice utilizes transaction records and GST data to assess creditworthiness, aiming to capture the underserved small business market through digital-first financial services. ## Financial Performance Metrics Slice reported a net profit of ₹48.4 crore in FY26, recovering from a ₹216.7 crore loss the previous year. Total income surged to ₹1,402.7 crore. By the June quarter of FY27, net profit reached ₹50.9 crore, driven by improved operating leverage as expenses fell to ₹226.1 crore from the previous quarter's ₹249.1 crore. ## Managing Credit Risk Maintaining asset quality remains a priority as the loan book expands. The gross non-performing asset ratio improved to 4.4% by the end of the June 2027 quarter, down from 4.8% in March. Despite this, gross bad loans rose to ₹222.5 crore, reflecting the inherent challenges of scaling credit products within a rapidly growing digital bank. ## Future IPO Ambitions Looking ahead, Slice is preparing for an initial public offering targeted for 2028. The firm continues to diversify its income streams, with non-interest income currently accounting for 42% of total revenue. Bajaj’s long-term vision is to become the primary financial institution for all customers, integrating payments, savings, and lending into one platform. ## Sources covering this story - https://www.livemint.com/companies/indias-revolut-or-nubank-will-emerge-from-a-bank-not-a-fintech-slice-ceo-rajan-bajaj-11792148763171.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._