India Ratings and Research (Ind-Ra) has upgraded Can Fin Homes Limited (CFHL) Long-Term Issuer Rating to IND AAA from IND AA+, marking a significant milestone for the housing finance company. This upgrade, which includes the company's Non-Convertible Debentures (NCDs) and subordinated debt programmes, reflects a positive outlook on CFHL's financial stability and growth prospects.

Key Highlights of the Upgrade

• Rating Upgrade: Long-Term Issuer Rating elevated to IND AAA from IND AA+
• Outlook: Stable
• Scope: Includes NCDs and subordinated debt programmes

Factors Driving the Upgrade

1. Strong Parental Support: The upgrade is primarily driven by the expectation of timely liquidity and equity support from Canara Bank, which holds a 29.99% stake in CFHL.

2. Regulatory Changes: The Reserve Bank of India's (RBI) decision to lift proposed restrictions on overlapping business lines between banks and their subsidiaries has reduced divestment risk and strengthened support expectations.

3. Financial Performance: CFHL's robust financial metrics have contributed to this rating upgrade.

Financial Performance Overview

To understand the company's financial strength better, let's look at some key financial metrics:

Impact and Implications

1. Lower Borrowing Costs: The AAA rating is likely to help CFHL access funds at more competitive rates, potentially improving its profit margins.

2. Investor Confidence: This upgrade may boost investor confidence, possibly leading to increased interest from both institutional and retail investors.

3. Market Position: The rating upgrade strengthens CFHL's position in the competitive housing finance sector.

4. Growth Prospects: With improved creditworthiness, CFHL may be better positioned to expand its loan book and market share.

Conclusion

The upgrade of Can Fin Homes to IND AAA by India Ratings is a testament to the company's strong financial performance and the implicit support from its parent, Canara Bank. As the housing finance sector continues to play a crucial role in India's economic growth, this rating upgrade positions CFHL favorably to capitalize on market opportunities and contribute to the broader goal of housing for all.

Investors and stakeholders will likely keep a close watch on how CFHL leverages this upgraded rating to drive growth and maintain its financial stability in the coming quarters.

Key Highlights

• Can Fin Homes Limited has declared an interim dividend of Rs 1.50 per equity share
• The record date for the dividend is set for March 22, 2024
• The total dividend payout amounts to approximately Rs 19.97 crore

Dividend Details

Can Fin Homes Limited, a prominent player in the housing finance sector, has announced an interim dividend of Rs 1.50 per equity share for the financial year 2023-24. This decision was made by the company's Board of Directors in their meeting held on March 11, 2024.

Record Date and Payment

The company has fixed March 22, 2024, as the record date for determining the eligibility of shareholders to receive the interim dividend. Shareholders whose names appear on the company's register of members or in the records of the depositories as beneficial owners on the record date will be entitled to receive the dividend.

Financial Implications

Based on the company's outstanding shares, the total dividend payout is estimated to be around Rs 19.97 crore. This payout reflects Can Fin Homes' commitment to delivering value to its shareholders while maintaining a balanced approach to capital allocation.

Investor Perspective

For investors, this interim dividend announcement comes as a positive development. It not only provides a tangible return on their investment but also signals the company's financial health and confidence in its near-term prospects.

Conclusion

The declaration of an interim dividend by Can Fin Homes Limited underscores the company's focus on shareholder returns. As the housing finance sector continues to evolve, investors and market analysts will closely watch Can Fin Homes' performance and future dividend policies.