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CreditAccess Grameen soars after turnaround performance in Q3

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Capital Market
Last Updated : Feb 07 2022 | 1:04 PM IST

CreditAccess Grameen jumped 9.67% to Rs 719.05 after the company reported a standalone net profit of Rs 129.2 crore in Q3 FY22 as against a net loss of Rs 71.6 crore in Q3 FY21.

Net Interest Income increased by 40.4% YoY to Rs 349.4 crore during the quarter. Net interest margin was 11.7% in Q3 FY22 as against 8.7% in Q3 FY21.

Pre-provision operating profit in Q3 FY22 was Rs 245.6 crore, up by 67.1% from Rs 147 crore in Q3 FY21.

Impairment of financial instruments declined by 69.6% to Rs 73.8 crore in the third quarter from Rs 242.4 crore recorded in the same period last year.

Gross non-performing asset (GNPA) ratio was 5.50% in Q3 FY22 as against 6.84% in Q3 FY21 and 7.18% in Q2 FY22.

Disbursements were Rs 3,866 crore in Q3 FY22 as against Rs 4,032 crore in Q3 FY21 and Rs 3,412 crore in Q2 FY22. Gross Loan Portfolio (GLP) increased by 19.4% to Rs 12,180 crore in Q3 FY22 from Rs 10,203 crore in Q3 FY21. CreditAccess Grameen restructured loans aggregating Rs 36.3 crore in Q3 FY22 as against Rs 99.1 crore in Q2 FY22. Overall, the MFI has restructured loans aggregating Rs 219.4 crore (including restructuring of loans worth Rs 77.1 crore done in FY21). Total provisioning on restructured loans, which account for 1.4% of GLP as on December-end 2021, was 32.4%.

On a consolidated basis, CreditAccess Grameen reported a net profit of Rs 117 crore in Q3 FY22 as against a net loss of Rs 79.1 crore in Q3 FY21. Net interest income rose by 35.5% YoY to Rs 412 crore during the quarter. CreditAccess Grameen's consolidated net profit includes the results of three subsidiaries viz. Madura Micro Finance (MMFL), Madura Micro Education and CreditAccess India Foundation.

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Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said, Our financial performance during Q3 FY22 was marked by significant improvement in operating profitability coupled with consistent improvement in asset quality, which helped us to reclaim our quarterly PAT of more than INR 100 crore after 2 years. Our collection efficiency excluding arrears consistently improved to 95% at CA Grameen and 89% at MMFL in Dec-21.

Overall, we opened 204 branches in the calendar year 2021 and added 5.42 lakh new borrowers of which 48% were outside the top 3 states, in line with our vision of being the preferred financial partner of households across the breadth and depth of the country.

We are elated to announce that we have achieved a major milestone in January 2022 with our consolidated loan portfolio crossing $2 billion mark. Our collection efficiency excluding arrears further improved to 95.6% at CA Grameen and 90% at MMFL in Jan-22.

CreditAccess Grameen is a microfinance institution focused on providing micro-loans to women customers predominantly in rural areas across India. The company, on consolidated basis, is now operating in 303 districts in the 14 states in India through 1,566 branches.

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First Published: Feb 07 2022 | 12:51 PM IST

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