Can Fin Homes shares plunge 8% on fraud at Ambala branch; NBFC sees 'one-time' hit on profit

Shares of Can Fin Homes tanked 8 per cent in Wednesday's trade after the internal team of the NBFC found employees of Ambala branch committing fraud over a period of time by transfer of funds to different personal bank accounts by misusing the cheque signing authority given. "The incident is found to be isolated to the said branch only," the bank said.

But the stock fell 8 per cent to hit a low of Rs 782.50 on BSE. This was in addition to a 4.4 per cent drop on the counter in the previous session. Despite the recent fall, the stock is up 44 per cent in 2023 so far.

The NBFC said three employee of the Ambala branch Vishal Saxena, Vivek Bhagat, Deepak Gupta committed the fraud estimated to be Rs 38.53 crore. It said an FIR has been lodged with the jurisdictional police. Necessary reports will be submitted to appropriate authorities within the prescribed timelines, it said.

Can Fin Homes said the fraud will have "one-time impact on the profitability to the extent of the amount misappropriated" and won't impact its assets or asset quality. It said that the fraud was committed over a period of time and got detected on July 24, 2023.

Earlier on Tuesday, Can Fin Homes said it appointed P Ratheesh Kumar as the Head of Risk based Internal Audit (RBIA) consequent to elevation of Ajay Kumar Singh (existing RBIA Head) to the position of Whole-time Director.  Kumar has been appointed w.e.f. July 24, initially for a tenure of three years, Can Fin Homes said.

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