Significant Improvement in Profitability Metrics Profit After Tax of INR 217 crore, up 85.3% YoY
Pune, February 2023: CreditAccess Grameen Limited the country’s largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), today announced its unaudited and limited reviewed financial performance for the third quarter and nine months of the period ended 31 December 2022.
Consolidated Business Highlights: Q3 FY23
• GLP grew by 21.9% YoY from INR 14,587 crore to INR17,786 crore
• Borrower base of 39.4 Lakh across 1,727 branches
• Collection Efficiency of 98% (excl. arrears)
Commenting on the performance, Mr. 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. Our gross loan portfolio grew by 21.9% YoY to INR 17,786 crore. We added 3.05 lakh new borrowers taking the total borrower base to 39.39 lakh. Our asset quality remains amongst the best in class with collection efficiency of 98% and net NPA (predominantly at 60+ dpd) of 0.59%. Q3 FY23 PAT grew by 85.3% YoY and 23.1% QoQ to INR 217 crore, resulting in ROA of 4.6% and ROE of 18.8%.Whereas 9M FY23 PAT significantly grew by 170.3% YoY to INR 533 crore. We reiterate our FY23 guidance of 4.0% – 4.2% ROA and 16.0% – 18.0% ROE.
Our balance sheet continues to get stronger every quarter with robust liquidity and capital position. We have further cemented our asset liability position by raising significant long term borrowings in Q3 FY23, consisting of foreign borrowings, both ECB and NCD, as well as our maiden domestic retail NCD issue. Our public NCD issue was the first in the microfinance industry and it received an overwhelming response from the investors leading to 3.03Xsubscription of the base size issue. We raised INR 500 crore in first tranche, with a board approval to raise another INR 1,000 crore until November 2023.
We foresee a very exciting future for the microfinance industry, and we shall continue to further strengthen our leadership position, being the preferred financial partner of low-income households across India. We draw comfort from the recent announcements made in the union budget FY 2023-24 focusing on women empowerment, inclusive development and reaching the last mile, as the key drivers towards strengthening the rural ecosystem which shallbenefit the rural financing opportunity, including microfinance business, over the coming years.”