CreditAccess Grameen Q1 PAT declines 22.1% yoy; NII rises 55.2% yoy

The company’s PAT declined by 22.1% yoy from Rs95.8cr to Rs74.6cr.

Aug 03, 2020 04:08 IST India Infoline News Service

Quarterly Results
CreditAccess Grameen Limited, country’s leading microfinance institution, announced its unaudited and limited reviewed financial performance for the first quarter of FY20­21. The company’s PAT declined by 22.1% yoy from Rs95.8cr to Rs74.6cr.
Consolidated Highlights Q1 FY21:

• Gross loan portfolio grew by 53.9% YoY from INR 7,619 crore to INR 11,724 crore Borrowers grew by 56.4% YoY from 25.6 lakh to 40.1 lakh
• NII grew by 55.2% YoY from INR 246.9 crore to INR 383.2 crore
• PPOP grew by 56.2% YoY from INR 163.6 crore to INR 255.6 crore
• Total ECL provisions were INR 476.8 crore (4.21% of loan portfolio). This  includes additional provisions of INR 152.5 crore during the quarter, on account of COVID­19 impact, apart from overlay built in for previous comparable risk events in its ECL methodology in FY21
• The total COVID­19 additional provisioning buffer was INR 245.6 crore (2.17% of loan portfolio) Hence, PBT declined by 32.2% YoY from INR 148.1 crore to INR 100.5 crore
• ROA of 2.2% and ROE of 10.3%
• Stable asset quality with GNPA of 1.62% and NNPA of 0.00%
• Robust liquidity position with INR 1,377.2 Cr cash / bank balance and liquid investments as on 30th June 2020, amounting to 10.7% of total assets, which further improved to Rs 1,636 Cr on 30th July 2020.

Commenting on the performance, Udaya Kumar Hebbar, Managing Director and CEO of CreditAccess Grameen, said, “We recorded strong business growth, with our standalone loan portfolio up 27.0% YoY to INR 9,680 crore and borrower base up 12.2% YoY to 28.8 lakh borrowers. This was further augmented by MMFL acquisition, leading to consolidated loan portfolio growth of 53.9% YoY to INR 11,724 crore and 56.4% YoY growth in our borrower base to 40.1 lakh. Our focus during the first quarter was on stabilising field collections, maintaining continuous customer connect and mobilising sufficient liquidity. Despite several intermittent localised lockdowns / restrictions, we were able to improve our collection efficiency to 74% by June and 76% by July. Even in case of MMFL, there was significant improvement in collection efficiency from 54% in June to 64% in July. This was primarily driven by our highly motivated field force, who made dedicated efforts whilst taking all precautionary / social distancing measures. Our strong customer relationships, deep rural presence and majority of borrowers being engaged in essential activities, helped us to record relatively faster recovery in collections. Disbursements were resumed in the last”

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