Canara Bank, a public sector bank, is planning to increase its stake in CanFin Homes by up to 5 per cent every year over the next few years. Currently, the bank owns 43.46% stake in Can Fin Homes, one of the top players in the housing finance sector. The bank has been impressed with CanFin Homes’ robust top-line and bottom-line growth as well as the rising dividend trajectory. In the last eight fiscals, CanFin Homes’ loan book and net profit have increased at compounded annual growth rates of 23% and 17%, respectively.
The bank has reported 40.65% fall in its net profit at Rs 478.84 crore for the quarter as compared to Rs 806.86 crore for the same quarter in the previous year. However, total income of the bank has increased by 4.47% at Rs 12252.64 crore for quarter under review as compared to Rs 11728.01 crore for the quarter ended June 30, 2014.
