CreditAccess Grameen's consolidated net profit surged to Rs 139.56 crore in Q1 FY23 as against Rs 20.29 crore recorded in Q1 FY22.
The microfinance lender's total income jumped 23.2% to Rs 760.52 crore in Q1 FY23 from Rs 617.37 crore reported in the corresponding quarter previous year.
The company reported profit before tax of Rs 188.81 crore in Q1 FY23, steeply higher than Rs 28.56 crore reported in Q1 FY22.
On consolidated basis, net interest income (NII) grew 30.9% YoY to Rs 461.5 crore in Q1 FY23 as against Rs 352.7 crore in Q1 FY22. Net interest margin (NIM) stood at 11.2% in Q1 FY23.
Pre-provision operating profit (PPOP) increased by 33.9% YoY to Rs 289.7 crore in quarter ended 30 June 2022 as compared to Rs 216.4 crore recoded in the same period a year ago.
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Impairment of financial instruments dropped by 46.3% YoY to Rs 100.9 crore in Q1 FY23 from Rs 187.9 crore posted in the same period last year.
Disbursements zoomed 101.5% YoY to Rs 2,146 crore in Q1 FY23 over Q1 FY22. Gross Loan Portfolio (GLP) grew by 23.3% YoY to Rs 15,615 crore in Q1 FY23 from Rs 12,664 crore posted in Q1 FY22.
Collection Efficiency in June 2022 at CA Grameen was 97% (excl. arrears)/97% (incl. arrears). Excluding the non-paying NPA customers, Collection Efficiency in June 2022 was 99% (excl. arrears)/100% (incl. arrears).
Collection Efficiency in June 2022 at Madura Micro Finance (MMFL) was 93% (excl. arrears)/94% (incl. arrears). Excluding the nonpaying NPA customers, Collection Efficiency in June 2022 was 96% (excl. arrears)/97% (incl. arrears).
Liquidity remained strong at Rs 1,541.8 crore of cash & cash equivalents at the end of June 2022, amounting to 9.3% of the total assets. Standalone CRAR stood at 28.6% and consolidated CRAR was 24.7% in Q1 FY23.
The company's Return on Assets (ROA) and Return on equity (ROE) stood at 3.1% and 13.4%, respectively in the quarter ended 30 June 2022.
Commenting on the performance, 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 March 2022. 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 April 2022 and May 2022. 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 June 2022 and we expect to see strong momentum in the coming quarters. We reiterate our annual growth and profitability guidance for FY23.
He further added, 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.
CreditAccess Grameen is a microfinance institution focused on providing micro-loans to women customers predominantly in rural areas across India.
Shares of CreditAccess Grameen surged 7.44% to settle at Rs 1,057.50 on Friday, 29 July 2022.
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