Tag: Can Fin Homes

Can Fin Homes sees no further stress from restructured book, expects 15-18% AUM growth in FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Can Fin Homes faced significant asset quality challenges in the third quarter of the current financial year due to its restructured book. However, the bank does not expect any further strain in the coming quarters.

The Canara Bank-promoted housing loan provider reported its Q3 results on January 20. It reported gross non-performing asset (NPA) of around ₹308 crore or 0.91% in the third quarter.

Speaking to CNBC-TV18, Suresh Srinivasan Iyer, Managing Director and CEO of Can Fin stated that out of the total impact, ₹96 crore was attributed to the restructured book.

“At the beginning of the year, we had indicated that we are having a slight pain to the extent of about 15% on the restructured book. This ₹96 crore is in line with the estimate because we had about ₹670 crores of restructured book. The good part is that the entire book has already come out of restructuring in November. So going forward, we don’t expect any further pain coming from the restructured book,” he highlighted.

As the company focuses on legal efforts and recovery, Iyer is optimistic about reducing gross NPA by around ₹20-30 crore in the fourth quarter from the restructured book.

Read Here | IDBI Bank Q3 Results | Net profit jumps 57% to ₹1,458 crore with double-digit NII growth

Iyer noted that the business has already returned to a run rate of about ₹700 crore in disbursements, projecting an upward trend to ₹2,500 crore in the fourth quarter. In the next financial year, the company is aiming for disbursements of ₹3,000 crore per quarter. This will translate to a 20% growth in disbursements for FY25.

He also expects an 18% growth in Assets Under Management (AUM) in the next year.

While Net Interest Margin (NIM) may not improve, it is expected to sustain above 3.5%.

Can Fin has a market capitalisation of ₹10,000 crore. The stock has gained over 36% in the past year but is down a little over 3% year to date. 

Also Read | IDFC First Bank Q3 Results | Profit rises 18% to ₹716 crore, provisions jump 46%

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Can Fin Homes Q3 Results | Net profit surges 32% to ₹200 crore on strong NII growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Canara Bank promoted housing loan provider Can Fin Homes Ltd on Saturday (January 20), reported a 32% year-on-year (YoY) rise in net profit at ₹200 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, Can Fin Homes posted a net profit of ₹151 crore, the company said in a regulatory filing to stock exchanges.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 30.6%, coming at ₹329 crore against ₹252 crore in the corresponding quarter of FY23.

The gross non-performing asset (GNPA) stood at 0.91% in the December quarter against 0.76% in the September quarter. The net non-performing assets (NPAs) came at 0.49% against 0.43% quarter-on-quarter. The Capital Risk Adequacy Ratio (CRAR) of the company stood at 24.58%.

During the previous quarter, the housing loan provider said it had reported a fraud about an isolated event in Ambala where internal staff colluded and caused a fraud on the Company perpetrated over 22 months from September 2021 till July 2023.

The final amount of fund defalcation was quantified as ₹39.67 crore. The company has fully provided for the entire amount of defalcation and accordingly, the post-tax impact of the fraud of ₹29.69 crores was fully provided in the previous quarter.

The Board of Directors had declared an interim dividend of ₹2 per share for equity shares of face value of ₹2 each at their meeting held on December 20, 2023, and paid subsequently. Can Fin Homes has declared 25 dividends since July 3, 2001. In the past 12 months, the company had declared an equity dividend amounting to ₹2 per share.

Shares of Can Fin Homes Ltd ended at ₹768.00, down by ₹10.20, or 1.31 percent on the BSE.

Note: The stock market is engaged in a complete session on Saturday, January 20, and will be closed on Monday, January 22, due to a public holiday in Maharashtra state to mark the inauguration of the Ram Temple in Ayodhya city.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This housing finance company may reward shareholders on December 22

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Can Fin Homes gained 3% to hit a day’s high of Rs 797.95 after the housing finance company said its Board will meet on Friday, December 22, 2023, to consider an interim dividend for the financial year 2023-24.

The company, promoted by state-owned Canara Bank, will also fix the record date for the purpose of payment of the interim dividend, if any.

“This is to inform that a meeting of Board of Directors of the company is scheduled to be held on Friday, December 22, 2023, inter-alia, to consider the proposal for payment of ‘Interim Dividend’ for the financial year 2023-24 and to fix ‘Record date’ for the purpose of payment of Interim Dividend, if any,” it said in a filing.

Can Fin Homes also informed that its trading window will remain closed from December 15 till 48 hours after the conclusion of aforesaid Board meeting.

Can Fin Homes has declared 25 dividends since July 3, 2001.

In the past 12 months, the company has declared an equity dividend amounting to ₹2 per share. At the current share price of ₹791, this results in a dividend yield of 0.25%.

Shares of Can Fin Homes have risen 44.60% so far this year, while the 1-year return stands at 46.68%.

Foreign brokerage Jefferies has a ‘buy’ call on the stock, with a target price of ₹970, which represents a potential upside of over 25% from yesterday’s closing of ₹775.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

These are Prabhudas Lilladher’s top picks among NBFCs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amnish Aggarwal, Head-Research, Prabhudas Lilladher thinks Can Fin Homes, the housing finance arm of public lender Canara Bank, is a structurally positive bet.

“Can Fin Homes, in terms of price to book, is not expensive. There have been some concerns on NPAs but otherwise, I think the stock still seems to be decently poised and given the inexpensive valuations it is trading at, it will give you very steady returns from hereon also,” he said.

CanFin Homes on October 17 reported an 11.5% year-on-year (YoY) jump in net profit at Rs 158 crore for the second quarter that ended September 30, 2023.

Speaking of Bajaj Finance earnings reported on October 17, Aggarwal said, non-performing assets (NPAs) are a concern but the company continues to deliver and looks good.

Bajaj Finance posted a 27.8% increase in net profit for the September quarter, at ₹3,550.8 crore, compared to ₹2,781 crore in the year-ago period. The net interest income (NII), or the difference between the interest earned and the interest paid, grew 26.3% on a year-on-year basis to ₹8,845 crore.

A CNBC-TV18 Poll estimated a net profit of ₹3,616.6 crore and NII of ₹7,208.7 crore.

In the longer run, structurally, the price to book value can’t be more than five times or so, Aggarwal said, adding, “So I think from here on the stock will give you more structural returns in a very gradual and steady manner,” he said.

Also Read | Siddharth Khemka predicts blockbuster quarter for NBFCs, says Bajaj Finance ‘will lead from the front’

The cost of funds of non-banking financial companies (NBFCs) are expected to peak out in Q2FY24, per a CNBC-TV18 analysis, So margin guidance could improve soon.

Projections indicate that strong momentum in disbursals will persist, contributing to substantial loan growth for specific NBFCs.

For more details, watch the accompanying video

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CanFin Homes shares gain after company closes investigation on a Rs 39 crore fraud

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After CanFin Homes Ltd reported fraud of over Rs 38 crore, sources close to the company on Monday (August 14) said there’s no revision in the fraud amount post scrutiny and that there is no need for further investigation.

The Canara Bank promoted housing loan provider in July had said three of its employees at the Ambala branch have committed fraud of Rs 38.53 crore, and an FIR has been lodged with the Haryana Police.

“…we inform you that the internal team of the company has found that employees of the Ambala branch of the company have committed fraud over a period of time by transfer of funds to different personal bank accounts by misusing the cheque signing authority given,” CanFin Homes said in an exchange filing.

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The three employees, namely Vishal Saxena, Vivek Bhagat, and Deepak Gupta, committed fraud over a period of time by transfer of funds to different personal bank accounts by misusing their cheque signing authority, the company said.

According to the company, the fraud was committed over a period of time and was detected on July 24, 2023. However, it assured that this will have no impact on the asset quality of CanFin Homes, and the incident is isolated to the said branch only.

Shares of Canfin Homes Ltd ended at Rs 733.00, up by Rs 8.70, or 1.20 percent on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CanFin Homes reports fraud of over Rs 38 crore by 3 employees at Ambala branch

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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CanFin Homes, the housing finance arm of public lender Canara Bank, on Tuesday, July 25, said three of its employees at the Ambala branch have committed fraud of Rs 38.53 crore, and an FIR has been lodged with the Haryana Police.

“…we inform you that the internal team of the company has found that employees of the Ambala branch of the company have committed fraud over a period of time by transfer of funds to different personal bank accounts by misusing the cheque signing authority given,” CanFin Homes said in an exchange filing.

The three employees, namely Vishal Saxena, Vivek Bhagat, and Deepak Gupta, committed fraud over a period of time by transfer of funds to different personal bank accounts by misusing their cheque signing authority, the company said.

According to the company, the fraud was committed over a period of time and was detected on July 24, 2023. However, it assured that this will have no impact on the asset quality of CanFin Homes and the incident is isolated to the said branch only.

The company reported a 13.1 percent year-on-year jump in net profit at Rs 183.5 crore for the first quarter that ended June 30, 2023. Net interest income (NII) jumped 13.9 percent, coming at Rs 285.1 crore against Rs 250.4 crore in the corresponding quarter of FY23.

The gross non-performing assets (GNPAs) stood at 0.63 percent in the June quarter against 0.55 percent in the March quarter. Net NPAs came at 0.34 percent against 0.26 percent quarter-on-quarter.

Shares of CanFin Homes Ltd ended at Rs 850.60, down by Rs 39.50, or 4.44 percent on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘Targetting 18-20% AUM growth’, says Suresh Srinivasan Iyer of Can Fin Homes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Suresh Srinivasan Iyer, the managing director and chief executive officer (CEO) of Can Fin Homes, said the company had earlier given a guidance of 18 to 20 percent growth in assets under management (AUM). “So we are in line with the AUM target between 18 percent and 20 percent range,” Iyer said.

Speaking to CNBC-TV18 on Thursday, he noted that last year also the company had a 18 percent growth in AUM. Iyer further said that the pickup will happen the second half, as the first half of the year is a little subdued compared to the second half.

Can Fin Homes CEO said the net interest margins (NIM), on a sequential basis, have improved during the quarter. He said the company should be able to maintain the NIMs at the current level of 3.4 percent.

Shares of Can Fin Homes settled 1.39 percent higher at Rs 829.65 apiece on Thursday after the company announces its June quarter numbers. The Canara Bank promoted housing loan provider posted a 13.1 percent year-on-year (YoY) rise in net profit at Rs 183.5 crore for Q1.

Net interest income (NII) — the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors — surged 13.9 percent, coming at Rs 285.1 crore against Rs 250.4 crore in the corresponding quarter of last fiscal.

Foreign brokerage Morgan Stanley has an equal weight rating on the housing loan provider. The brokerage said the company’s profit beat estimates by 9 percent led by higher NIM and lower operating costs. The NIM expanded 17 basis points QoQ to 3.6 percent. Opex was down 16 percent QoQ.

The company’s gross Non Performing Assets (NPA) was stable year-on-year while provision coverage fell both year-on-year and sequentially, analysts said. Loans rose 18 percent year-on-year and 3 percent quarter-on-quarter.

Meanwhile, Jefferies has a ‘Buy’ call on the stock, with target price of Rs 850. The brokerage said the June quarter profit was 7 percent ahead of its estimates.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Can Fin Homes Q1 Results | Net profit rises 13% to Rs 183 crore, beats estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Canara Bank promoted housing loan provider Can Fin Homes Ltd on Wednesday (July 19) reported a 13.1 percent year-on-year (YoY) jump in net profit at Rs 183.5 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, the company posted a net profit of Rs 162.2 crore, the company said in a regulatory filing. CNBC-TV18 Polls had predicted a profit of Rs 170.8 crore for the quarter under review.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 13.9 percent, coming at Rs 285.1 crore against Rs 250.4 crore in the corresponding quarter of FY23.

The gross non-performing asset (GNPA) stood at 0.63 percent in the June quarter against 0.55 percent in the March quarter. Net NPA came at 0.34 percent against 0.26 percent quarter-on-quarter.

The bank’s provision coverage ratio was at 46.57 percent in the first quarter of FY24 against 52.3 percent in Q1 of FY23, Can Fin Homes said.

The results came after the close of the market hours. Shares of Can Fin Homes Ltd ended at Rs 818.75, up by Rs 20.90, or 2.62 percent on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Can Fin Homes board approves fund raise of up to Rs 5,000 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Canara Bank promoted housing loan provider Can Fin Homes Ltd on Monday (June 19) said its board has approved raising up to Rs 4,000 crore via debt instruments and up to Rs 1,000 crore via Qualified institutional placement (QIP).

“To place the recommendation to the members at ensuing Annual General Meeting for issuance of on-shore and/or off-shore debt instruments including but not limited to bonds, non-convertible debentures, non-convertible subordinated debt in the nature of Tier II NCDs/bonds, denominated in Indian currency and/or any foreign currency, up to an amount not exceeding Rs 4,000 crore,” the company said.

Also, it said, “To place the recommendation to the members at the ensuing Annual General Meeting for further issue of shares through Qualified Institutional Placement (QIP) and/or preferential allotment and/or Rights issue for an amount not exceeding Rs 1000 crore.”

Further, the home loan company appointed Ajay Kumar Singh as an additional director and whole–time director designated as deputy managing director (Key Managerial Personnel).

Can Fin Homes provide housing loans, top-up personal loans, mortgage loans, and builder loans among others.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow