CreditAccess Grameen reports robust Q1 FY24 performance: Total income sees 54% increase

In Q1 FY24, CreditAccess Grameen Limited, a non-banking financial company-microfinance institution (NBFC-MFI) based in Bengaluru, reported its unaudited and limited reviewed financial performance. The company posted a significant YoY increase in total income, rising by 53.9% from INR 760.5 crore to INR 1,170.7 crore. Net interest income (NII) also saw a substantial growth, up by 65.4% YoY from INR 461.5 crore to INR 763.3 crore.

CreditAccess Grameen’s pre-provision operating profit (PPOP) increased by 87.7% YoY from INR 289.7 crore to INR 543.8 crore. Meanwhile, impairment of financial instruments showed a decrease of 24.3% YoY from INR 100.9 crore to INR 76.4 crore. The company reported a significant YoY increase in profit after tax (PAT), up by 151.5% from INR 138.6 crore to INR 348.5 crore. It also maintained a strong liquidity position with INR 2,034.5 crore of cash, cash equivalents and investments, representing 8.9% of the total assets.

Regarding business highlights, the Gross Loan Portfolio (GLP) grew by 39.7% YoY from INR 15,615 crore to INR 21,814 crore. The borrower base saw an expansion of 19.9% YoY from 36.9 lakh to 44.2 lakh across 1,826 branches, alongside a high collection efficiency of 98.7% (excluding arrears).

Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, noted, “We have entered the 25th year of excellence in women empowerment with strong business momentum in the first quarter on the back of a growing rural economy… Our gross loan portfolio grew 39.7% YoY to INR 21,814 crore at the end of June 2023… With the best-in-class-asset quality, our PAT grew 151.5% YoY and 17.5% QoQ to Rs. 348 Crore during Q1 FY24… We are confident of achieving our annual performance guidance for FY24 given the growth momentum gained in the first quarter…”