can fin homes nhb?

Can Fin Homes is not aware of any probe either by the Reserve Bank of India (RBI) or National Housing Bank (NHB) on its books and has not seen any “serious” irregularity in the accounts, the company's managing director and chief executive officer Girish Kousgi said.

“We have not heard anything from the regulator – both the NHB or the RBI,” Kousgi told CNBC-TV18 on May 9

The clarification came following a media report that said that RBI may probe the detection of fraud in 37 accounts of Can Fin Homes.

Shares of Can Fin Homes dropped over 14 percent intraday on May 9 to Rs 466.55 a piece, before recovering subsequently following the management clarification.

However, the audit committee asked parent Canara Bank for an inspection, Kousgi said. The bank had then sent a team to support Can Fin Homes in risk, audit and general admin, he added.

“From there we figured out that in one branch some 37 accounts had fake ITRs (income tax returns). We declared them as fraud and classified them as NPA (non-performing assets). Other than this, all the other queries are normal in nature,” Kousgi added.

The managing director said that the fraud of Rs 3.93 crore was reported to the NHB.

An email for clarification sent by Moneycontrol to both Can Fin Homes and the RBI did not elicit an immediate response.