CreditAccess Grameen announced Q2FY23 results: Q2FY23 (Consolidated): Total income increased by 31.6% YoY from Rs 618.6 crore to Rs 814.3 crore Net interest income (NII) increased by 39.9% YoY from Rs 368.9 crore to Rs 516.2 crore Pre-provision operating profit (PPOP) increased by 52.9% YoY from Rs 218.7 crore to Rs 334.3 crore Impairment of financial instruments declined by 24.7% YoY from Rs 139.9 crore to Rs 105.4 crore Total ECL provisions were Rs 386.1 crore (2.46%) against GNPA (largely @ 60+ dpd) of 2.17%, and PAR 90+ of 1.72%. NNPA further reduced to 0.77% Write-offs were Rs 163.0 crore Profit After Tax (PAT) increased by 195.0% YoY from Rs 59.7 crore to Rs 176.0 crore, recording the highest quarterly PAT till date Robust liquidity of Rs 1,147.0 crore of cash & cash equivalents, amounting to 6.7% of the total assets Healthy capital position with standalone CRAR of 29.0% and consolidated CRAR of 25.0% Credit Rating: AA-/Stable by India Ratings, A+/Positive by CRISIL & ICRA. CRISIL upgraded the rating outlook from ‘Stable’ to ‘Positive’ in Q2 FY23 Commenting on the performance, Mr. Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said, “We witnessed the strongest second quarter, recording our highest quarterly PAT of INR 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 INR 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 USD 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 USD 195 Mn, 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.” Result PDF
Conference Call with CreditAccess Grameen Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript.
Finance company CreditAccess Grameen announced Q1FY23 results: Consolidated: Total income increased by 23.2% YoY from Rs 617.4 crore to Rs 760.5 crore Net interest income (NII) increased by 30.9% YoY from Rs 352.7 crore to Rs 461.5 crore Pre-provision operating profit (PPOP) increased by 33.9% YoY from Rs 216.4 crore to Rs 289.7 crore Impairment of financial instruments declined by 46.3% YoY from Rs 187.9 crore to Rs 100.9 crore Total ECL provisions were Rs 443.7 crore (3.01%) against GNPA (largely @ 60+ dpd) of 3.11%, and PAR 90+ of 2.33% Write-offs were Rs 191.1 crore Profit After Tax (PAT) increased by 588.2% YoY from Rs 20.3 crore to Rs 139.6 crore Liquidity remained strong at Rs 1,541.8 crore of cash & cash equivalents at the end of Jun-22, amounting to 9.3% of the total assets Healthy capital position with standalone CRAR of 28.6% and consolidated CRAR of 24.7% Credit Rating upgraded to AA- (Stable) by India Ratings & Research, the highest notch in the microfinance industry. Commenting on the performance, Mr. Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said, “Our primary focus during Q1 FY23 was on maintaining strong collections trend and ensuring complete alignment with the new microfinance underwriting guidelines announced by the RBI in Mar-22. This involved formulation of necessary board-approved policies, implementation of the required process and technology changes, and extensive training for our large field force. The process transition led to lower disbursements and borrower additions during Apr-22 and May-22. Further, there were limited loan renewals during Q1 FY23 majorly due to minimal disbursements in Q1 FY21 and Q1 FY22 owing to the Covid-19 pandemic. The disbursements and borrower additions got normalised in Jun-22 and we expect to see strong momentum in the coming quarters. We reiterate our annual growth and profitability guidance for FY23. We continued to march ahead with our infrastructure expansion plans as our branch network increased to 1,681 on the back of 46 net branch additions during the quarter primarily in newer states. Our diversification strategy is showing positive results with 56% of the borrower additions during Q1 FY23 coming from outside of the top 3 states. We are happy to announce that we have recently received a credit rating upgrade to 'AA- / Stable', the highest notch in the microfinance industry. We currently charge one of the lowest interest rates to our customers and the future benefits accruing from the rating upgrade shall be gradually passed on to them. We have also been conferred the highest level of recognition, the 'Gold Standard’ in Client Protection Principle (CPP) Certification. It is a global framework that determines the degree of client protection practices followed across the loan cycle, in our pursuit of creating capital at the bottom of the pyramid.” Result PDF
Conference Call with CreditAccess Grameen Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Finance company CreditAccess Grameen announced Q4FY22 results: Total income increased by 13.5% YoY from Rs 726.2 crore to Rs 824.5 crore Net interest income (NII) increased by 12.1% YoY from Rs 463.7 crore to Rs 519.6 crore Pre-provision operating profit (PPOP) increased by 12.1% YoY from Rs 329.0 crore to Rs 368.8 crore Impairment of financial instruments declined by 39.7% YoY from Rs 250.4 crore to Rs 151.0 crore Total ECL provisions were INR 533.9 crore (3.44%) against GNPA (largely @ 60+ dpd) of 3.61%, and PAR 90+ of 2.71% Write-offs were Rs 294.4 crore Profit After Tax (PAT) increased by 184.4% YoY from Rs 56.3 crore to Rs 160.1 crore Liquidity remained strong at Rs 1,761.4 crore of cash & cash equivalents at the end of March 2022, amounting to 10.1% of the total assets Healthy capital position with standalone CRAR of 26.5% and consolidated CRAR of 22.8% A+ (Stable) Credit Rating affirmed by leading rating agencies in India. Result PDF