CreditAccess Grameen posts highest-ever quarterly profit growth at 195% | Mint
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Business News/ Companies / Company Results/  CreditAccess Grameen posts highest-ever quarterly profit growth at 195%
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CreditAccess Grameen posts highest-ever quarterly profit growth at 195%

The country's largest non-banking financial company-micro finance institution (NBFC-MFI) -- CreditAccess Grameen -- said it posted a record 195% jump in its net profit to ₹176 crore for the quarter ended September, against ₹59.7 crore in the year-ago period

Udaya Kumar Hebbar, MD & CEO, CreditAccess GrameenPremium
Udaya Kumar Hebbar, MD & CEO, CreditAccess Grameen

BENGALURU : The country's largest non-banking financial company-micro finance institution (NBFC-MFI) -- CreditAccess Grameen -- said it posted a record 195% jump in its net profit to 176 crore for the quarter ended September, against 59.7 crore in the year-ago period.

The MFI's total income rose 31% year-on-year to 814.3 crore from 618.6 crore in the corresponding quarter the previous year. Its net interest income increased 39.9% to 516.2 crore from 368.9 crore in the year-ago period. However, impairment of financial instruments declined 24.7% to 105.4 crore from 139.9 crore.

Commenting on the strong performance, Udaya Kumar Hebbar, MD and CEO, said, "We witnessed the strongest second quarter, recording our highest quarterly PAT of 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 (second quarter in 2022-23) and disbursed 4,375 crore, the highest-ever during the second quarter to date. Our asset quality largely normalised with 97%-98 per cent collection efficiency, and net NPA (non-performing assets) of 0.77 per cent."

The MFI said its gross loan portfolio grew 24% to 16,539 crore from 13,333 crore in the year-ago period. Disbursements grew 12.5% to 4,375 crore while collection efficiency was at 97%. The MFI also said it had a borrower base of 38 lakh across 1,684 branches.

The MD and CEO said, "We are extremely happy to announce that the United States International Development Finance Corporation (DFC) supported us with a $35 million ESG (environmental, social, and governance)-linked loan for up to seven years, first of its kind direct lending to an Indian MFI. Overall, in the past six 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."

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Published: 26 Oct 2022, 08:12 PM IST
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