CreditAccess Grameen jumps after Q3 PAT spurts 85% YoY

CreditAccess Grameen jumped 6.76% to Rs 962 after the micro lender's consolidated net profit surged 85.3% to Rs 216.8 crore on 31.9% increase in total income to Rs 909.7 crore in Q3 December 2022 over Q3 December 2021.

On a consolidated basis, net interest income (NII) increased by 37.7% YoY to Rs 567.4 crore in Q3 FY23. Net Interest Margin (NIM) jumped 44 bps to 11.9% in Q3 FY23 as against 11.4% in Q3 FY22.

Pre-provision operating profit (PPOP) increased by 38.7% YoY to Rs 379.5 crore in Q3 FY23. Impairment of financial instruments declined by 24.2% YoY to Rs 89.4 crore.

Gross NPA stood at 1.71% in Q3 FY23 as against 6.02% in Q3 FY22, down 431 bps YoY. Net NPA was at 0.59% in Q3 FY23 as against 2.60% in Q3 FY22, down 201 bps YoY.

Return on Assets (ROA) was at 4.6% in Q3 FY23 as against 3%, up 163 bps YoY. The company's gross loan portfolio (GLP) grew by 21.9% YoY to Rs 17,786 crore in Q3 FY23. Borrowers increased 5.3% YoY to 39.4 lakh in Q3 FY23. Total branches increased 8.4% YoY to 1,727 during the quarter.

The company's cash & cash equivalents stood at Rs 1,439.9 crore, amounting to 7.7% of the total assets. Healthy capital position with standalone CRAR of 28.4% and consolidated CRAR of 24.7%.

Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said, "The third quarter witnessed robust sequential improvement in business momentum, operating efficiency, asset quality and return ratios, culminating in yet another milestone of surpassing INR 200 crore in quarterly net profit. We are confident of sustaining this profitability trend and further improving it over the coming quarters.

Bengaluru-based CreditAccess Grameen is a leading Indian microfinance institution, focused on providing micro-loans to women customers predominantly in rural areas across India.

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