The board of Can Fin Homes approved fund raising up to ₹5,000 crore through Non-Convertible Debentures (NCDs) at its meeting held on 08 June 2026. According to reports from Business Standard, the approval was granted for raising funds through various debt instruments including bonds, non-convertible debentures, non-convertible subordinated debt in the nature of Tier II NCDs/bonds, Residential Mortgage Backed Securities (RMBS) including Pass Through Certificates (PTC) denominated in Indian currency and/or any foreign currency. The ₹5,000 crore approval represents a significant liquidity buffer compared to the previous year's tranches, with the funds to be utilized for general corporate purposes including onward lending to housing loan applicants and strengthening the company's long-term liquidity position.
The company's shift towards long-term debt through NCDs is part of a strategic move to mitigate asset-liability mismatch risks in a fluctuating interest rate environment. As reported by Business Standard, NCDs remain a preferred route for Can Fin Homes due to better cost-efficiency compared to traditional bank borrowings, potentially allowing the company to lower its cost of funds and achieve Net Interest Margins (NIMs) of around 3.5% or higher. The move is expected to improve the company's NIMs if the NCDs are priced competitively, with institutional investors expected to show high interest given the company's historically stable asset quality. The funds will be utilized for general corporate purposes, including onward lending to housing loan applicants and strengthening the company's long-term liquidity position.
The approval signals a strong growth outlook for the housing finance sector, with Can Fin Homes continuing to demonstrate efficient liability management. According to Business Standard, the company's focus on the mid-market segment (₹25 L to ₹50 L tickets) remains a defensive moat against competitive pressures from larger banks. The Indian housing finance industry is witnessing a consolidation phase where lenders with strong parentage or clean balance sheets like Can Fin Homes are gaining market share from smaller NBFCs. In May 2026, Can Fin Homes reported a 12% YoY growth in net profit for Q4 FY26, supported by robust loan disbursements, and announced plans to expand its branch network in Western India to diversify its geographically concentrated portfolio.
