CreditAccess Grameen's consolidated net profit surged 170.6% to Rs 172.03 crore in Q2 FY23 as against Rs 63.57 crore recorded in Q2 FY22.
The microfinance lender's total income jumped 31.6% to Rs 814.31 crore in Q2 FY23 from Rs 618.58 crore reported in the corresponding quarter previous year.The company reported profit before tax of Rs 229.01 crore in Q2 FY23, steeply higher than Rs 78.79 crore reported in Q2 FY22.
On consolidated basis, net interest income (NII) grew 39.9% YoY to Rs 516.2 crore in Q2 FY23 as against Rs 368.9 crore in Q2 FY22. Net interest margin (NIM) improved to 12% in Q2 FY23 as compared to 11.2% posted in Q2 FY22.
Pre-provision operating profit (PPOP) increased by 52.9% YoY to Rs 334.3 crore in quarter ended 30 September 2022 as compared to Rs 218.7 crore recoded in the same period a year ago.
Impairment of financial instruments declined by 24.7% YoY to Rs 105.4 crore in Q2 FY23 from Rs 139.9 crore posted in the same period last year.
Disbursements rose 12.5% YoY to Rs 4,375 crore in Q2 FY23 over Q2 FY22. Gross Loan Portfolio (GLP) grew by 24% YoY to Rs 16,539 crore in Q2 FY23 from Rs 13,333 crore posted in Q2 FY22.
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Collection Efficiency in September 2022 at CA Grameen was 97% (excl. arrears)/98% (incl. arrears).
Liquidity remained strong at Rs 1,147 crore of cash & cash equivalents at the end of September 2022, amounting to 6.7% of the total assets. Capital position was healthy with standalone CRAR of 29% and consolidated CRAR of 25%.
The company's Return on Assets (ROA) and Return on equity (ROE) stood at 4% and 16.1%, respectively in the quarter ended 30 September 2022.
Commenting on the performance, Udaya Kumar Hebbar, MD & CEO of CreditAccess Grameen said, We witnessed the strongest second quarter, recording our highest quarterly PAT of Rs 176 crore. There has been healthy growth across all parameters ranging from borrower addition, disbursements, collection efficiency, asset quality, net interest margin, return ratios and traction in foreign funding. We added over 2.8 lakh borrowers during Q2 FY23 and disbursed Rs 4,375 crore, the highest ever during the second quarter to date. Our asset quality largely normalised with 97%-98% collection efficiency, and Net NPA of 0.77%.
Given our strong control over the cost of borrowings coupled with one of the lowest lending rates in the industry, we are best placed to protect our net interest margin (NIM), in a rising interest rate scenario. Over the past 6 months, our cost of borrowing increased by only 30 bps to 9.2% whereas our NIM expanded by 70 bps to 12.0%. The improved operating performance helped us generate a ROA of 4.0% and an ROE of 16.1% in Q2 FY23. H1 FY23 performance gives us the confidence to comfortably achieve our annual performance guidance for FY23.
We are extremely happy to announce that the United States International Development Finance Corporation (DFC) supported us with a $35 million ESG-linked loan for up to 7 years, first of its kind direct lending to an Indian MFI. Overall, in the past 6 months, we received sanctions of around $195 million, aiding our strategy of diversifying liability profile. Today, we have strong visibility on foreign sourcing, backed by 38% share in undrawn sanctions and 19% share in sanctions in the pipeline.
CreditAccess Grameen is a microfinance institution focused on providing micro-loans to women customers predominantly in rural areas across India.
Shares of CreditAccess Grameen slipped 1.54% to currently trade at Rs 969.75 on the BSE.
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