CANFINHOME

Can Fin Homes Ltd. (CANF) is the housing finance arm of Canara Bank. Predominantly active in South India, the company offers a wide range of financial products, including housing loans, composite loans, non-housing loans, mortgage loans, and commercial property loans, in addition to fixed and cumulative deposits. The loan book grew by 9.0% YoY to Rs. 38,773 cr. The client base now stands at 2.83 lakh. Net interest income grew by 12.9% YoY to Rs. 349 cr. The net interest margin (NIM) edged moderately lower to 3.6% compared to last quarter. The cost-to-income ratio in Q1FY26 inched up mainly due to a one-time actuarial impact from salary revisions and increased rent from new branches and zonal offices. It is expected to normalize to around 18% in FY26 and 19% in FY27 with IT costs factored in. PAT grew modestly by 12.1% YoY to Rs. 224 cr in Q1FY26, despite an uptick in provisions. The increase in provisioning was a deliberate and tactical move by the management, aimed at cleaning up sticky accounts early in the fiscal year. Asset quality experienced slight deterioration, with GNPA/NNPA rising to 0.98%/0.54% from 0.91%/0.49% in Q1FY25. The Provision Coverage Ratio (PCR) also declined to 45.2% from 46.5% in Q1FY25.