Inside slice’s Bet To Fix A Broken Bank

The 2024 merger between slice and North East Small Finance Bank has delivered an early turnaround, with improving asset quality, a stronger balance sheet and the bank reporting its first profitable phase

The turnaround was driven by integrating slice’s proprietary underwriting, behavioural data models and in-house core banking stack with the bank’s operations

Despite improved NPAs, rising deposits and expanding income, slice SFB faces high operating costs, regulatory scrutiny and stiff competition

Added to Saved Stories in Login VIEW SAVED STORIES .inc42-toggle-item-popup { display: none; position: relative; } .toggle-item-close { text-align: end; padding: 8px 12px 0px 10px; position: absolute; right: 0; cursor: pointer; } .toggle-items-content-main { display: block; position: relative; top: 27px; left: -204px; border-radius: 12px; background: #FFF; box-shadow: 0px 4px 24px 0px rgba(100, 100, 100, 0.25); width: 435px; height: 115px; } .toggle-items-content { display: flex; align-items: baseline; justify-content: center; padding-top: 22px; } .toggle-items-content .items-content-text .h4-saved-story{ color: #000; font-size: 20px; font-style: normal; font-weight: 700; line-height: normal; text-transform: capitalize; margin: 2px 0 10px 6px; } .toggle-items-content .items-content-text .myInc42-plus-dark { width: 100px !important; } .toggle-items-content .items-content-text .myInc42-light { width: 80px !important; } .toggle-items-content .items-content-text img{ height: 22px; } .view-my-feed-btn { width: 100%; text-align: center; display: flex; justify-content: center; } .view-my-feed-btn a { width: auto !important; } .view-my-feed-btn button { border-radius: 4px; background: linear-gradient(180deg, #DA1B4D 0%, #E23026 100%); color: #fff; font-size: 12px; display: inline-block !important; min-width: 162px; width: 162px !important; height: 34px !important; font-style: normal; font-weight: 700; line-height: normal; padding: 10px; cursor: pointer; } .CustomIconStyled { position: absolute; right: 180px; top: -80px; } .SubDropdownModelShare .sub-arrow-icon { width: 76px; height: 80px; position: relative; overflow: hidden; box-shadow: none; } @media (max-width:767px) { .toggle-items-content .items-content-text .h4-saved-story{ margin: 4px 0 10px 6px; font-size: 18px; } .toggle-items-content { align-items: center; } }

When slice completed its merger with the troubled North East Small Finance Bank (NESFB) on October 27, 2024, amid RBI’s clampdown on co-branded credit cards, many saw it as a gamble that was doomed to fail. One year, two months, and four days later, as of December 31, 2025, the Rajan Bajaj-led fintech unicorn, and now a small finance bank (SFB), had already turned it all around.   

NESFB, which traces its origins to Rashtriya Gramin Vikas Nidhi — a microfinance society founded in 1995 — had a gross non-performing asset (NPA) of 11.89% in the financial year 2023-24 (FY24). The small finance bank (SFB) had a net worth of around ₹61 Cr and a return on assets of -7.01% when the Tiger Global-backed co-branded credit card startup bought it  

slice, founded in 2016, was also in a regulatory quagmire due to the apex bank’s crackdown on BNPL startups. Its loss for the year (FY24) stood at ₹152.7 Cr against a top line of INR 251 Cr.

Tables turned, and slice, now a small finance bank, reported its first profitable phase, as of December 31, 2025. Its net profit was ₹27.97 Cr in the first nine months of FY26.

Across fintech and consumer tech spaces, it is a rare sight for startups to acquire legacy companies, and such sightings are even rarer in the country’s financial........

© Inc42