The Can Fin Homes stock has been rallying on the back of good third quarter earnings. The guidance too was strong.

Throwing more colour on the quarterly performance and outlook going forward Girish Kousgi, MD & CEO of Can Fin Homes said said of the entire loan portfolio, 5 percent is loan against property (LAP. From the loans to individuals around 71 percent is salaried and 29 percent at self-employed/non-professionals (SE/NP). Even incrementally this mixed is maintained, he added.

"If you look at stressed in salaried it is not there and therefore the delinquencies has been pretty stable for us over last few quarters. However, in SE/NP which is SME space there has been some stress but it is manageable because we have taken lot of mitigants while decisioning these profiles. At any day SE/NP is slightly riskier compared to salaried and therefore even the delinquency will be slightly higher. But SE/NP stress is slightly easing compared to what it was maybe six months back.”

Talking about cost of fund he said, “If you look at last quarter, our incremental cost of borrowing has come down 20 basis points, so it is about 7.75. At a portfolio we are at 7.88. So, overall it is coming down. Going forward the drop may not be so much but we expect some drop in costs of funds because we are very conscious about cost.”

When asked if they were seeing pressure on margins and competition form banks, he said they do not compete with banks or bigger HFCs since their target segments, geographies are different. "Our yields have increased compared to last quarter, and spreads too along with NIMs have increased," he added.

Talking about expanding geographies Kousgi said, “We can see potential in most of geographies that we are present in. Historically, south has been good for us in terms of business, even today it is about 70 percent. In terms of branch expansion, we had a plan to reach 200 by March. We are at 196, so we will reach that number by March.''

" When we think of growth, branch expansion, we would expand in south as well as other geographies - some states in north, some states in west, which has a good repayment culture,” he said, adding that they would grow in all the geographies but would be conscious of maintaining the salaried and SE/NP mix.

Talking about RERA issue in Karnataka, he said, “That issue has now been resolved, and growth is back in that state.”

“We are planning to raise capital but the quantum, timing and to what extent will be decided in next few weeks.”