Can Fin Homes Ltd, the housing finance arm of Canara Bank, reported a 33.8% year-on-year (YoY) increase in net profit, reaching ₹211.5 crore for the second quarter ending September 30, 2024. In the same quarter last year, the company posted a net profit of ₹158.1 crore.
Key Financial Highlights:
- Net Interest Income (NII): Increased by 7.3%, standing at ₹339.8 crore compared to ₹316.8 crore in the corresponding quarter of FY24.
- Gross NPA: Improved slightly to 0.88% in Q2 FY25 from 0.91% in Q1 FY25.
- Loan Portfolio: As of September 2024, Can Fin Homes’ loan portfolio grew by 10% YoY to ₹36,591 crore. Housing loans accounted for 77% of the total portfolio.
- Loan Disbursements: Disbursements in Q2 FY25 were ₹2,381 crore, reflecting an 18% YoY growth and a 28% sequential increase over Q1 FY25.
As of 9:22 am the shares were trading 4.28% higher at ₹868.55 on NSE.
Jefferies has reaffirmed its “buy” rating for Can Fin Homes with a target price of ₹1,020, representing a 21.4% upside from the current market price of ₹839.95. The brokerage noted that although net interest income rose by 7%, operating costs slightly offset the gains, but loan growth remained steady, and asset quality continued to be stable.
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