New Delhi, Jul 25 (IANS): The internal team of Can Fin Homes has found that employees of Ambala branch of the Company have committed fraud over a period of time by transfer of funds to different personal bank accounts by misusing the cheque signing authority.

The nature of fraud has been defined as misappropriation of funds.

The estimated impact is a one-time impact on the profitability to the extent of the amount misappropriated but no impact on assets/asset quality. The fraud was committed over a period of time and was detected on July 24, 2023.

The persons involved in the fraud are Vishal Saxena, Vivek Bhagat, Deepak Gupta, the company said.

The estimated amount involved is Rs 38.53 crore.

Can Fin Homes said an FIR has been lodged with the jurisdictional police.

Necessary reports will be submitted to appropriate authorities within the prescribed timelines. Based on a summary verification, the incident is found to be isolated to the said branch only.

The stock closed down by 4.4 per cent at Rs 850 on BSE.

Can Fin Homes Ltd is a Housing Finance Company promoted by Canara Bank, in 1987.

As per the website, it is the first HFC floated by any Nationalised bank in the country.

The main objective of setting up the Company was promoting home ownership & increasing the housing stock in the country.

The initial shareholders of the company were, Canara Bank, Can Bank Financial Services, HDFC and UTI.

It is one of the very few HFCs permitted by NHB for taking deposits from public.

It was listed in 1991 and has a history of uninterrupted profits & dividend payment since inception with 100 per cent dividend declared since FY16.