CARE Ratings has reaffirmed the CARE AAA rating with a stable outlook for Can Fin Homes’ long-term bank facilities and debt instruments. The rating affirmation reflects Can Fin Homes’ strong parentage with Canara Bank holding a 29.99% stake, strong financial flexibility, and a healthy financial performance, outweighing challenges of high leverage. The company has withdrawn ratings for repaid NCDs.
Credit Ratings Maintained
Can Fin Homes (CFHL) has received reaffirmation of its CARE AAA rating with a Stable outlook for its long-term bank facilities and debt instruments. The rating agency, CARE Ratings Limited, made the announcement on November 17, 2025.
Key Rating Drivers
The reaffirmation is primarily driven by:
- Strong parentage with Canara Bank as the primary shareholder holding 29.99% stake.
- Strong financial flexibility, enabling fund raising from diversified sources at competitive rates.
- Relatively low-risk loan portfolio with a dominant share of salaried borrowers.
- Continued healthy financial performance and stable profitability.
- Strong asset quality and adequate capitalisation levels.
Rating Sensitivities
The rating could be negatively affected by:
- Weakening credit profile of Canara Bank.
- Change in Canara Bank’s philosophy towards CFHL or announcement of stake sale.
- Increase in gearing (total debt/net-worth) beyond 8x levels.
- Weakening asset quality with gross stressed assets above 5% on a sustained basis.
Financial Performance Highlights
CFHL has shown consistent profitability supported by a stable net income margin (NIM) of 3.50% in FY25. The company reported a profit after tax (PAT) of ₹475 crore in H1FY26. The gross non-performing assets (GNPA) stood at 0.94% as of September 30, 2025, with overall gearing improving to 6.74x.
Withdrawal of Ratings
CareEdge Ratings has also withdrawn the rating assigned to certain Tier II bond non-convertible debenture (NCD) issues as the company has fully repaid these NCDs and there is no outstanding amount.
Source: BSE
