Major Housing Finance Player Seals Rs. 296.95 Crore Deal with Tech Giant – Is This the Next Big Growth Trigger?
A top mortgage lender partners with IBM to modernize operations—will this fuel its stock growth?
Can Fin Homes has awarded a contract to IBM India Private Limited for the supply, implementation, and maintenance of its Core Business Solution, Infrastructure, and Security Solution. The selection was approved by the Board of Directors through a circular resolution on February 20, 2025. The contract, valued at Rs. 296.95 crore, spans seven years, including a one-year implementation phase, three months of warranty, and over five years of support and maintenance.
Key Solutions to Be Implemented
IBM will provide a comprehensive lending solution, covering Loan Origination and Management Systems, Document Management, Risk Management, Human Resources Management, and various reporting requirements. The company will also ensure a robust IT infrastructure, including cloud solutions, cyber security measures, data protection, and disaster recovery systems.
Strategic Benefits and Security Measures
The agreement will strengthen Can Fin Homes' digital capabilities by integrating advanced security solutions such as Privilege Identity and Access Management, Data Loss Prevention, and Security Operations Center management. Additionally, it will streamline project management, enhance system performance, and improve customer experience through digital transformation.
Q3 FY25 Financial Performance
Can Fin Homes reported strong financial growth in Q3 FY25. The loan book expanded to Rs. 37,155 crore, reflecting a 9% year-on-year increase, while the customer base reached 2.73 lakh. The company recorded a Net Interest Income (NII) of Rs. 345 crore, Profit Before Tax (PBT) of Rs. 269 crore, and Profit After Tax (PAT) of Rs. 212 crore.
Operational Efficiency and Asset Quality
The company maintained a Net Interest Margin (NIM) of 3.73% and Return on Assets (RoAA) of 2.25%. Return on Equity (RoE) stood at 17.55%, while the cost-to-income ratio was 16.92%. The debt-equity ratio remained at 7.08, with Gross Non-Performing Assets (NPA) at 0.92% and Net NPA at 0.49%.
Loan Book Composition
The salaried and professional segment accounted for 71% of the outstanding loan book, while housing loans made up 87%, including commercial real estate. The average ticket size of new housing loans was Rs. 23 lakh, while non-housing loans averaged Rs. 13 lakh.
Future Outlook
With the implementation of IBM’s solutions, Can Fin Homes aims to enhance operational efficiency, improve security, and offer seamless financial services. This strategic move is expected to support long-term growth and strengthen its position in the housing finance sector.
Disclaimer: The article is for informational purposes only and not investment advice.