Asset quality improved with a drop in standalone Portfolio at Risk – 30 days to 11% in August from 12.9% in July. PAR was at 13.8% in June
MUMBAI: The largest non-bank microfinance institution, CreditAccess Grameen Ltd (CA Grameen), reported a 200% year-on-year jump in disbursements to Rs1,188 crore in August, returning to pre-pandemic levels. Disbursements in August grew 7.3% sequentially from Rs1,107 crore in July.
The MFI also saw an improvement in collection efficiency and asset quality during August, a sign of ebbing of the impact of the second covid wave and resumption of economic activity. Collection efficiency improved to 92.5% in August from 91% in July and 81% in June. The total loan book grew 18.8% year-on-year to Rs11,155 crore during the month.
Asset quality improved with a drop in standalone Portfolio at Risk – 30 days to 11% in August from 12.9% in July. PAR was at 13.8% in June. However PAR for 60 days rose to 8.3% in August from 8.1% in July. PAR for 60-day bucket was 7.8% in June. Similarly 90-day PAR stood at 6.3% in August compared with 5.7% in July and 3.8% in June.
“With the business environment gradually returning to normalcy after Covid 2.0, we continued to maintain our focus on stringent asset quality control. On the back of improved collections trend, we gradually increased our monthly disbursements, not only serving our existing customers, but also adding new customers across our end markets. We are working towards further increasing the monthly collection efficiency which will help us to reduce the overdue portfolio over coming months," said Udaya Kumar Hebbar, MD & CEO, CA Grameen.
According to MFI self-regulatory body Sa-Dhan, microfinance sector had seen a 14% year-on-year decline in loan portfolio to ₹2.14 lakh crore in the first quarter.