Can Fin Homes targets 20% disbursement growth in FY26 on rate relief

Can Fin Homes aims to grow loan disbursements by 20 per cent in FY26, citing softer interest rates and recovery in key markets like Karnataka and Telangana

Can Fin Homes Ltd is targeting to grow disbursements by 20 per cent in FY26 from a mere 5 per cent rise in FY25, on the back of softening interest rates and better business conditions in Karnataka and Telangana.

 

It had disbursed loans worth ₹8,568 crore in FY25 against ₹8,178 crore in FY24.

 

Suresh Iyer, managing director (MD) and chief executive officer (CEO), told Business Standard that “the housing sector is looking up. The lower policy rate means lower equated monthly instalments (EMIs) and that is definitely positive.”

 

Can Fin Homes' disbursement growth target is likely to result in 13-15 per cent growth in assets under management (AUM) during FY26.

 

Outstanding loan assets grew 9 per cent year-on-year (Y-o-Y) to ₹38,217 crore at the end of March 2025.

 

The housing finance company had to face challenges in two major markets – Karnataka and Telangana during FY25.

 

Business in Karnataka was impacted due to some delays in the registration of sale transaction documents.

 

The issue with E-Khata, a digitised version of certificates providing property owners with a secure and online platform, has been resolved.

 

In Telangana, the loan base is already low. “While we may not go back to the old numbers in the state, there will definitely be growth,” Iyer added.

 

On passing on the benefits of the easing rate cycle, he said liquidity is ample and the Reserve Bank of India (RBI) had cut the policy repo rate by 50 basis points (bps). The RBI may reduce the policy rate by another 50 bps.

 

Once the company gets the benefits in terms of reduction in cost of funds, it will be able to pass on benefits of 35-50 bps to customers, subject to market conditions.

 

On the liabilities side, Can Fin Homes sources 55 per cent of funds from the banking sector and another 7 per cent through commercial papers.

 

So, whenever rates come down, over 60 per cent of liabilities get repriced, creating room for passing on the benefits, Iyer added.