Can Fin Homes reported a 12 per cent year-on-year (yoy) decline in third quarter net profit at ₹116 crore against ₹132 crore in the year ago quarter due to higher provisions for expected credit loss and write-offs. 

The housing finance company’s (HFC) net interest income (difference between interest earned and interest expended) declined about 2 per cent yoy to ₹206 crore (₹210 crore in the year ago quarter). 

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Provisions for expected credit loss and write-offs rose to ₹16.35 crore against ₹1.62 crore in the year ago quarter. 

Disbursements jumped 123 per cent yoy to ₹2,472 crore (₹1,106 crore). 

As at December-end 2021, the outstanding loan book was up 19 per cent yoy to stand at ₹25,091 crore (₹21,004 crore as at December-end 2020). 

As at December-end 2021, loans to salaried and professionals accounted for 74 per cent of the total loans (72 per cent) and loans to non-salaried class - self employed and non-professionals - accounted for 26 per cent (28 per cent). 

Dip in net interest margin

Gross non-performing assets increased a shade to 0.71 per cent of gross advances against 0.68 per cent in the year ago quarter. 

However, net non-performing assets declined a tad to 0.39 per cent of net advances against 0.41 per cent in the year ago quarter. 

Net interest margin declined to 3.74 per cent against 4.12 per cent in the year ago quarter. 

Canara Bank has 29.99 per cent stake in the HFC and is its promoter.

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