BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
KRChoksey Report
CreditAccess Grameen Ltd., a Large Microfinance Institution (MFI) was mainly established to serve India’s low income groups (LIGs). CAGL is a leading MFI with Rs 99 billion of Asset under Management (AUM) in FY20, highest amongst all 53 MFIN members. Major portion of portfolio derives from states of Karnataka, Maharashtra and Tamil Nadu, primarily southern India. Strong rural existence, established operating structure with notable Gross Loan Portfolio (GLP) growth gaining its sturdy market share in the MFIN industry. Focus on geographic diversification to minimize the concentrated risk and hence would maintain the asset quality at same levels.
India’s 70% of rural population, RBI’s financial inclusion plan (2001) and Government’s Jan Dhan Yojana (2014) has presented more scope in microfinance industry. We believe CAGL has a strong ability to get back to normalcy post lockdown, as 82% of its overall portfolio is from rural. Production and consumption is largely local in rural areas. Post Covid-19, microfinance industry would initiate rural economic growth and revenue generation
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