History

Can Fin Homes Ltd was established on October 29, 1987, through a collaboration between Canara Bank and esteemed financial institutions like HDFC and UTI. This initiative was launched in Bangalore to promote home ownership and expand the housing stock nationwide. The company was listed on May 4, 1989, on the Bombay Stock Exchange. In 1999, the company introduced an innovative 'Abhivridhi Deposit scheme' wherein the deposit amount doubled in just 65 months, demonstrating its commitment to customer-centric financial solutions. Notably, the company was chosen by the National Housing Bank to participate in the pilot issue of resource mobilisation through mortgage-backed securities. In a significant development, the company conducted an IPO on March 13, 2015, with shares having a face value of ₹10 each. Furthermore, Can Fin Homes Ltd pioneered the housing finance sector by inaugurating exclusive Affordable Housing Loan Centres (AHLCs) in line with the government's 'Housing for All' initiative. Complying with RBI guidelines, Canara Bank divested a portion of its stake (13.45%) to M/s Calladium Investments Pte, Limited, an affiliate of GIC Singapore, ultimately holding a 30.57% stake in the company by the end of FY2016-17. As of 2023, Can Fin Homes Ltd has established a vast presence with 196 branches, 21 Affordable Housing Loan Centres (AHLCs), and 12 Satellite Offices in 21 States & Union Territories, totalling 208 offices across the country. All these branches and satellite offices are seamlessly connected to the Registered Office in Bengaluru through a robust core banking platform. Notably, the company predominantly operates in southern India, with 70% of its branches situated in this region. As of September 30, 2023, Can Fin Homes Ltd. has a rating of AAA/Stable for its long-term loans and AA+/Stable for its short-term loans and non-convertible debentures Can Fin Homes Ltd is a prominent entity in the housing finance sector, having garnered 35 years of successful operation since its inception. The company is distinguished by a commendable track record of consistent profitability and dividend payouts.

Business Segments

Can Fin Homes Ltd. (CFHL) operates in the housing finance sector. Here is a breakdown of their business segments:

1. Housing Loans:CFHL offers housing loans to individuals, salaried/self-employed professionals, and other categories of borrowers. These loans can be used to purchase ready-built houses and flats or construct new houses.
2. Non-Housing Loans:The company also delivers non-housing loans, such as mortgage loans (ML), loans against property (LAP), loans for commercial properties, loans against rent receivables, personal loans (PL), loans for children's education, and CFHL Nischint for pensioners.
3. Deposits:Can Fin Homes Ltd. accepts two types of deposits: fixed deposits and cumulative deposits. These deposits are available for various tenures and interest rates, depending on the type of deposit and the customer's category.

Key Personnel

Suresh S Iyer, Managing Director and CEO Suresh S Iyer is the managing director and CEO of Can Fin Homes Ltd. His professional journey commenced with Gruh Finance in 1997, which subsequently merged into Bandhan Bank. Over the course of his career, he rapidly ascended to a key role in the core management team, accumulating more than 25 years of consistent work experience within Gruh Finance. During his tenure at Gruh Finance, Mr. Iyer's contributions spanned various roles and functions, including sales, operations, IT strategy, policy and pricing, risk, recovery, and legal. He demonstrated remarkable success in each capacity, which propelled his progression through the company's hierarchy. Additionally, Mr. Iyer gained valuable exposure to Board and Audit Committee activities starting in 2001.

Management Outlook

1. The organization maintains robust asset quality by assessing individual creditworthiness through various parameters, resulting in lower non-performing assets compared to competitors. The strategic core priority on salaried demographics ensures a stable customer base, reducing credit risk.
2. To manage costs effectively, the organization leverages commercial papers (CPs) while relying on lower-interest bank borrowings and National Housing Bank (NHB) refinancing. This approach allows for more competitive loan products, positively impacting the organization's financial performance.
3. The organization maintains a disciplined cost-to-income ratio of 16-17%, efficiently utilising resources to maximise productivity and support a healthy earnings trajectory.
4. Initiating a new core banking solution and collaborating with FinTech firms enables improved customer experiences, cost reduction, and expansion.
5. Focusing on affordable housing meets increasing demand, addresses underserved markets, aligns with governmental initiatives, and secures a competitive edge in the housing finance domain.