Can Fin Homes Reports Fraud Of Rs 38.5 Crore At Ambala Branch

Can Fin Homes Ltd, reported Rs 38.53 crore worth fraud at its Ambala branch, according to an exchange notice on Tuesday.

The housing finance arm of public sector lender Canara Bank said that the fraud was committed by three of its employees through misappropriation of funds.

It added that the employees committed fraud over a period of time by transferring funds to different personal bank accounts, primarily by by misusing the cheque signing authority given to them. The fraud was detected on July 24.

The probe in the matter is on and the company has filed a first information report with the police. The company expects to submit necessary reports to the appropriate authorities as per the defined timelines.

Can Fin Homes has clarified that the fraud has no impact on the assets or asset quality of the company. However, it expects a one-time impact on the profitability to the extent of the amount misappropriated.

In the April-June quarter Can Fin Homes reported a net profit of Rs 183.46 crore, up 13% year-on-year. The company's gross non-performing asset ratio was 0.63% as of June 30, while net NPA ratio was 0.34%.

This is the second instance of fraud reported by the company in recent months.

In May 2022, the company detected 37 loan accounts with fake income tax returns. A cumulative loan amount of Rs 3.93 crore was reported as fraud by the company.