Can Fin Homes shares have experienced a phenomenal run on the bourses, gaining 100 percent in one year and more than 325 percent in two years, even as PNB Housing Finance is all set to enter the primary market with its initial public offering (IPO).
Can Fin Homes share price closed at Rs. 1,482 on Friday (Aug. 26, 2016), translating into a gain of 100.27 percent from the closing price of Rs. 740.30 on Aug. 27, 2015. When compared with the closing price of Rs. 348 on Aug. 27, 2014, the appreciation is 325 percent.
In comparison, Canara Bank, which holds 43.45 percent stake in the home loan company, has had a poor run on the stock exchanges, falling 6.9 percent to Rs. 268.55 on Friday (Aug. 26, 2016) from Rs 288.80 on Aug. 27, 2015.
For the first quarter (Q1) ended June 30, Can Fin Homes posted 55 percent rise in net profit at Rs. 49.73 crore as against Rs. 32.10 crore in the year-ago period. Total income increased 28 percent in Q1 to 242.53 crore as compared to the corresponding period last year. Net interest income grew 43 percent to Rs. 91.87 crore from Rs. 64.03 crore for the quarter ended June 30, 2015.
The home loan company's gross non-performing assets (NPAs) and net NPAs stood at 0.24 percent and 0.04 percent, respectively, as of June 30, 2016.
Canara Bank reported 52 percent fall in net profit for Q1 to Rs. 229 crore on account of higher provisioning for bad loans. The bank had to provide Rs. 1,492 crore during the quarter for bad loans as against Rs. 1,359 crore in the year-ago period.
The bank's net profit in June 2015 quarter was Rs. 478 crore.
Total income in Q1 fell to Rs. 11,786 crore from Rs. 12,252 crore in the corresponding period last fiscal, according to the Bengaluru-based lender's regulatory filing to the Bombay Stock Exchange on July 25.
PNB Housing Finance, in which state-run Punjab National Bank has a 51 percent stake, is entering the primary market with an approximately Rs. 2,500 crore initial public offering (IPO).