Latest news with #CanFinHomes
Business Standard
01-07-2025
- Business
- Business Standard
Can Fin Homes appoints Abhishek Mishra as new CFO
Can Fin Homes informed that its board has approved the appointment of Abhishek Mishra as the chief financial officer (CFO) of the company for a period of 3 years w.e.f. from 30 June 2025. In a related move, Prashanth Joishy has stepped down as Interim CFO, also effective 30 June 2025. He will remain with the company in the role of Deputy General Manager. Abhishek Mishra is a Chartered Accountant from the 2003 batch and a graduate from the University of Kolkata. He has been working with Volvo Financial Services, Bangalore (NBFC) since February 2015, currently serving as a Senior Finance Manager. With over 20 years of post-qualification experience, he has held the role of Finance Controller and has managed end-to-end financial operations. Prior to this, he worked with Family Credit, Kolkata, in various capacities from July 2004 to January 2015. Can Fin Homes is a housing finance institution approved by the National Housing Bank (NHB), the apex authority of housing in the country. The companys standalone net profit rose 11.9% to Rs 233.92 crore on 7.8% rise in revenue from operations to Rs 999.65 crore in Q4 FY25 over Q4 FY24. Shares of Can Fin Homes rose 0.26% to Rs 794.70 on the BSE.
Mint
26-06-2025
- Business
- Mint
Can Fin Homes sets a record date for dividend: Plans to raise funds up to ₹11,000 crore
Stock Market Today: Can Fin Homes has set a record date for identifying the list of eligible shareholders to receive a dividend. The board also has proposed to raise funds up to ₹ 11,000 crore. The 'Record Date' for identifying the list of eligible shareholders to receive the Final Dividend has been set by the Can Fin Homes Board of Directors for Friday, July 11, 2025. For the fiscal year that concluded on March 31, 2025, Can Fin Homes declared a final dividend of Rs. 6.00 per equity share with a face value of Rs. 2.00 apiece. The board of directors of Can Fin Homes also approved raising up to ₹ 11,000 crore using a mix of debt and equity instruments. Subject to shareholder approval, this entails raising ₹ 1,000 crore through equity and ₹ 10,000 crore through debt, including options like rights issues and qualified institutional placement (QIP). In its release on the exchanges, Can Fin Homes said that the Board of Directors of the company has approved 'to place the recommendation to the members at the ensuing Annual General Meeting for issuance of on-shore and/or off-shore debt instruments, including but not limited to bonds, nonconvertible 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.10,000 Crores (Rupees Ten Thousand Crores only).' Also, the Board has approved '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 (Rupees One Thousand Crores only).' These recommendations are being presented to shareholders for approval at the company's next Annual General Meeting (AGM), which is set for August 20, 2025.
Mint
26-06-2025
- Business
- Mint
Can Fin Homes sets a record date for dividend: Plans to raise funds up to ₹11,000 crore
Stock Market Today: Can Fin Homes has set a record date for identifying the list of eligible shareholders to receive a dividend. The board also has proposed to raise funds up to ₹ 11,000 crore. The 'Record Date' for identifying the list of eligible shareholders to receive the Final Dividend has been set by the Can Fin Homes Board of Directors for Friday, July 11, 2025. For the fiscal year that concluded on March 31, 2025, Can Fin Homes declared a final dividend of Rs. 6.00 per equity share with a face value of Rs. 2.00 apiece. The board of directors of Can Fin Homes also approved raising up to ₹ 11,000 crore using a mix of debt and equity instruments. Subject to shareholder approval, this entails raising ₹ 1,000 crore through equity and ₹ 10,000 crore through debt, including options like rights issues and qualified institutional placement (QIP). In its release on the exchanges, Can Fin Homes said that the Board of Directors of the company has approved 'to place the recommendation to the members at the ensuing Annual General Meeting for issuance of on-shore and/or off-shore debt instruments, including but not limited to bonds, nonconvertible 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.10,000 Crores (Rupees Ten Thousand Crores only).' Also, the Board has approved '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 (Rupees One Thousand Crores only).' These recommendations are being presented to shareholders for approval at the company's next Annual General Meeting (AGM), which is set for August 20, 2025. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Indian Express
07-05-2025
- Business
- Indian Express
Can Fin Homes is no longer a market darling, but are better days ahead?
Can Fin Homes is regarded as one of the most respected housing finance companies (HFCs) in India. Its reputation stems from a simple reason: it avoided the mistakes that brought down several of its peers. In the years leading up to 2018, many HFCs aggressively expanded into real estate developer financing — a strategy that backfired in the aftermath of the 2018 IL&FS crisis. A lack of funding exposed gaping issues in the developer financing segment, leading to the downfall of many companies, including DHFL, PNB Housing Finance, Edelweiss Housing Finance (now Nido Home Finance), and Indiabulls Housing Finance (now Samaan Capital). During this period, Can Fin Homes continued to remain profitable. Its NPAs ratios were the best in class, not only during the 2018-19 crisis but also during the Covid lockdown. Yet, its price-to-book value has been continuously trending downwards despite a profit growth of 19.3% between FY19 and FY25. Fig 1 (Source: The P/B ratio has steadily declined and is now below levels seen during the Covid-19 market crash. The stock has not performed well either. Fig 2 (Source: Why is this happening? Several structural shifts in the regulatory and competitive landscape post-2018 help explain the de-rating. Regulatory change in favour of banks: Until 2019, HFCs were regulated by the National Housing Bank (NHB), which acted both as a regulator and a refinancer. This led to concerns over a conflict of interest. Regulatory norms under NHB were relatively light touch — capital adequacy norms were lower, liquidity requirements minimal, and asset-liability mismatches (ALM) weren't strictly monitored. This allowed HFCs to grow rapidly, often by borrowing short-term and lending long-term. The IL&FS crisis changed everything. In response, the Finance Act of 2019 transferred the regulation of HFCs from NHB to RBI, aligning them with NBFCs under tighter scrutiny. Post-2019, HFCs faced several new challenges: Higher Capital Requirements: Equity capital as a percentage of loans was raised to 15% (from 12%), phased in by 2022. Strict asset liability norms reduced the freedom to raise short-term funds for long-term loans. Exposure Norms: Builder loans and LAP (Loan Against Property) came under tighter control. Funding Costs: The RBI doesn't refinance HFCs like NHB did, removing the conflict of interest. Banks also enjoy cheaper, more stable funding versus HFCs. The result was that HFCs have lost their funding edge, and banks, flush with deposits, are much better positioned to give home loans at lower rates. Is asset quality also worsening? Not significantly. Can Fin Homes' GNPA ratio as of FY24 stood at just 0.9%, the best among peers. However, a slight uptick since FY23, at a time when most peers have shown improvement, could be a cause for concern. Fig 3 (Source: First Principles Investing, Annual Reports and Investor Presentations) Fig 4 (Source: Motilal Oswal Report on Can Fin Homes – Q4FY25 Update) In addition to the above, one possible reason for a de-rating could be branch-level frauds detected over the last 2-3 years. A branch in Ambala reported a fraud of Rs 40 crore in FY23, and another branch in Bhilwara, Rajasthan, reported a fraud of Rs 3.5 crore. Another incident involved a whistleblower complaint by an employee in October 2024 alleging recruitment fraud by a senior executive. While isolated, a combination of all these factors has likely led to the de-rating in Can Fin Homes. Is profitability a concern? Profitability has not declined materially. However, while ROE remains high compared to listed HFC peers, it has trended downward compared to FY18. Fig 5 : (Source: Can Fin Homes Ltd FY24 Annual Report) Further investments in IT overhaul and branch expansion is likely to put pressure on margins in the near term until benefits of these investments begin to accrue. Does Can Fin suffer from operational challenges? Disbursement growth remains a key hurdle in expanding the loan book. In FY24, total disbursements fell to Rs 8,177 crore, down from Rs 8,947 crore in FY23. In FY25, it is up by a meagre 4.8% at Rs 8,568 crore. Fig 6: (Source: The reason for continued slowdown, especially in Q3FY25, was due to Karnataka's e-khata issue that stalled nearly Rs 400 crore worth of business. As a result, Q3 FY25 disbursements were flat year-on-year. Impact of IT systems overhaul Can Fin Homes is in the midst of an IT overhaul. This involves implementing a completely new Loan Origination System (LOS) and Loan Management System (LMS) package, along with other key operating functions. Implementation is expected to take 9-12 months, and the project is expected to go live in Q3 FY26 (October-December 2025). However, near-term disruptions are likely. The IT expenses have already increased by about Rs 3 crore per quarter since the March 2024 quarter. From FY27, annual operational costs are expected to rise by approximately Rs 25 crore per year. The initial capital expenditure is also significant, estimated potentially around Rs 60-75 crore, which will be amortised over 6-7 years. Has Can Fin Homes' business model changed for the worse? While salaried customers still account about 72-73% of the loan book, the company is tweaking its product mix. It's now strategically increasing exposure to self-employed segment (SENP), which accounts for 35-38% of incremental disbursements and its share in total loan mix has gone up from 25% in FY22 to nearly 30% in FY25. The company is expanding Loan Against Property (LAP), opening it up to new customers, and is aiming to take LAP to around 7% of total mix. These changes aim to protect margins and find newer avenues of growth. But this raises a fundamental question. Can it go down the risk curve, grow well and keep portfolio quality at similar levels compared to when it was primarily serving salaried employees only? The consensus, assuming market valuations are a reflection of investor consensus, is that Can Fin Homes of 2025 is not the Can Fin Homes of the last decade. Facts versus outcome Investors such as 3P India fund 1 which have consistently raised stake in Can Fin Homes Ltd over the last few quarters have a contrarian view. Their actions suggest that it believes that factors such as disbursement slowdown, IT overhaul, product mix changes are either temporary problems or unlikely to materially change the competitiveness of canfin homes. On an absolute basis, the P/B ratio is at a 10-year low. Fig 7 (Source: On a relative basis, Can Fin Homes valuation is towards the lower end of the spectrum (Top 15 HFCs in India). Does it deserve this valuation? Is the market factoring in too much negative? Or is the market factoring in a slow but continued decline in performance? Investors looking to either invest or reconsider their current holdings in the HFC space are faced with these questions. There are no easy answers, and how it plays out remains to be seen. Note: We have relied on data from and throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information. Rahul Rao has helped conduct financial literacy programmes for over 1,50,000 investors. He has also worked at an AIF, focusing on small and mid-cap opportunities. Disclosure: The writer or his dependents do not hold shares in the securities/stocks/bonds discussed in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
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Business Standard
05-05-2025
- Business
- Business Standard
Can Fin Homes targets 20% disbursement growth in FY26 on rate relief
Can Fin Homes Ltd plans to grow disbursements by 20 per cent year-on-year (YoY) in the current financial year (FY26), up from five per cent in FY25, on the back of softening interest rates and improved business conditions in Karnataka and Telangana. It disbursed loans worth ₹8,568 crore in FY25, compared to ₹8,178 crore in FY24. Suresh Iyer, Managing Director and Chief Executive, Can Fin Homes, told Business Standard, 'The housing sector is looking up. The lower policy rates mean lower equated monthly instalments (EMIs), and that is definitely a positive.' Internally, the company is targeting 20 per cent disbursement growth, which should result in 13–15 per cent growth in assets under management (AUM) in FY26. Its outstanding loan assets grew by 9 per cent YoY to ₹38,217 crore as of end-March 2025. The housing finance company faced challenges in two of its major markets — Karnataka and Telangana — in FY25. Business in Karnataka was affected by delays in the registration of property sale transactions. The issue with e-Khata, a digitised version of certificates providing property owners with a secure online platform, has since been resolved. In Telangana, where the issue was more sentiment-driven and the base was already lower, Iyer said, 'While we may not go back to the old numbers, there will definitely be growth.' Referring to the easing interest rate cycle, Iyer said liquidity is ample and the Reserve Bank of India has already cut the policy repo rate by 50 basis points. Another 50-basis-point cut is anticipated. Once the company sees a reduction in its cost of funds, it expects to pass on 35–50 basis points of benefit to customers, subject to market conditions. On the liabilities side, the company sources 55 per cent of its funds from the banking sector and another seven per cent through commercial papers. 'So whenever rates come down, over 60 per cent of our liabilities get repriced, creating room for passing on benefits,' Iyer added.
