Can Fin Homes - Wary Of Growth Amid Price Wars: Nirmal Bang
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Nirmal Bang Report
Can Fin Homes Ltd. recently (effective September 01, 2021) increased its lending rates by 75 basis points.
The company’s home loan offering now starts at 8.25%, up 130 bps since April 2021.
At the same time, we have seen large banks cut their festive-period home loan offerings to record lows of 6.5-6.7%.
In view of such heavy price competition from banks, we remain wary about Can Fin Homes’ ability to deliver 18-20% growth in FY22.
Increasing share of high-ticket size loans/apartment funding may boost growth in the short term, but it would also expose the company to balance transfer risks due to uncompetitive pricing.
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