Money & Banking

CanFin Homes Q3 profits up 24%

Our Bureau. Bengaluru | Updated on January 25, 2021

With improved Net Interest Margin (NIM) and collections, CanFin Homes Limited has posted 23.74 per cent higher profits at ₹131.91 crore on a standalone basis for the third-quarter of FY21 against a profit of ₹106.60 crore recorded in the same period last year.

The company’s Q3 total income from operations is lower by 2.71 per cent at ₹502.76 crore against ₹516.79 crore in the same period last year. EPS for the quarter stood at ₹9.91 compared with ₹8.01 last year.

Commenting on the company’s Q3 performance, Girish Kousgi, Managing Director & CEO, CanFin Homes, said: “Under tough times, the company has managed good growth, profitability and maintained its asset quality.”

As on December 31, 2020, the company holds a provision of ₹72.89 crore, which is more than the requirement as per the RBI circular on Covid-19 regulatory package.

The company further said that the Supreme Court, in a writ petition by Gajendra Sharma versus Union of India and vide its Interim Order dated September 3, 2020, has directed that the accounts that were not declared non-performing asset (NPA) till August 31, 2020, shall not be declared NPA till further orders. Pending disposal of the case by the Supreme Court.

Pursuant to the Interim Order, the company has not declared any account as NPA, which was not NPA as on August 31, 2020, in accordance with the extant NHB prudential norms on income recognition, asset classification, and provisioning pertaining to to advance. Further, in light of the interim order, even accounts that would have otherwise been classified as NPA post August 31, 2020, have not been and will not be classified as NPA till such time that the Supreme Court rules finally on the matter. However, the company, as a prudent measure, holds an adequate contingent provision amounting to ₹13 crore in respect of these advances.

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Published on January 25, 2021
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