Can Fin Homes report an 11.54 percent growth in net profit to Rs 158.07 crore for Q2 FY24. Total income from operations surged by 32.47 percent to reach Rs 871.03 crore, and net interest income increased by 26.1 percent to Rs 316.8 crore. An internal fraud incident in the Ambala branch resulted in a fund defalcation of Rs. 39.67 crore, prompting Can Fin Homes to file an FIR and fully provide for the amount, with a post-tax impact of Rs. 29.69 crore. As of September 30, 2023, the company showcased a strong financial position with a net worth of Rs 3,961.32 crore, a debt-equity ratio of 7.73, and NPAs.
Can Fin Homes, the housing finance arm of Canara Bank, has announced impressive financial results for the quarter ending on September 30, 2023. Notably, the company has achieved a notable growth rate, with its net profit surging by 11.54 percent during Q2 FY24. The profit after tax, a key indicator of financial performance, reached an impressive Rs 158.07 crore in this quarter, a substantial increase from the Rs 141.71 crore reported during the corresponding period in the previous fiscal year. The company's total income from operations also exhibited robust expansion, standing at Rs 871.03 crore.
This figure represents a significant growth of 32.47 percent compared to the Rs 657.55 crore recorded in the similar quarter of the previous year. This substantial increase in total income underscores the financial health and vigour of Can Fin Homes. Net interest income (NII), a pivotal metric for financial institutions, experienced substantial growth, surging by 26.1 percent to reach Rs 316.8 crore in Q2 FY24. This remarkable growth in NII, the difference between the interest income derived from lending activities and the interest paid to depositors, is a testament to the company's effective financial operations and prudent management of funds.
For context, this is a substantial increase from the Rs 251.2 crore reported in the corresponding quarter of FY23. Despite its strong financial performance, the company faced challenges during this period. Can Fin Homes report an incident in Ambala where internal staff engaged in fraudulent activities over a period of 22 months, spanning from September 2021 to July 2023. The company promptly informed the stock exchanges about this isolated event. The fraud came to light after the declaration of results for Q1 FY 2023–24, prompting the company to initiate a thorough investigation.
Remarkably, Can Fin Homes acted swiftly and efficiently to resolve the issue. The investigation revealed that the fraudulent activities were confined to the Ambala branch. The company has quantified the amount of funds misappropriated at Rs. 39.67 crore. In response to this incident, Can Fin Homes has taken decisive action, filing a First Information Report (FIR) against the employees involved. Furthermore, the company has decided to fully provide for the entire amount associated with this fraud during the current quarter, resulting in a post-tax impact of Rs. 29.69 crore.
As of September 30, 2023, Can Fin Homes has demonstrated impressive financial indicators. The company's net worth stood at Rs 3,961.32 crore, showcasing its robust financial position. The debt-equity ratio was recorded at 7.73, signifying the company's prudent leverage and financial stability. Additionally, the company maintained a healthy net profit margin of 20.15 percent, a testament to its efficient financial management. Importantly, the company's gross non-performing assets (NPAs) remained at a low level of 0.76 percent, and its net NPAs were reported at a commendable 0.43 percent.
Established in 1987, Can Fin Homes Ltd. is a reputable housing finance company promoted by Canara Bank. The company focuses on providing financing primarily to low- and middle-income individuals and first-time homebuyers, with a particular emphasis on salaried or professional borrowers. Over the years, Can Fin Homes has strategically expanded its portfolio to include self-employed professionals and non-professionals, reflecting its commitment to serving a broader clientele while maintaining robust financial performance.
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