CreditAccess Grameen Q1 Results: Net Profit Falls 22%

CreditAccess Grameen Ltd. reported over 22% year-on-year decline in consolidated net profit at Rs 75 crore in the April-June quarter.

Its net interest income, however, jumped 55.2% to Rs 383.20 crore, according to a release. The microfinance lender's gross loan portfolio grew 53.9% over the year ago to Rs 11,724 crore, it said. Borrowers grew 56.4% to 40.1 lakh.

The company said it is well capitalised, with standalone capital to risk weighted assets ratio of 23.7%.

"We recorded strong business growth, with our standalone loan portfolio up 27% year-on-year to Rs 9,680 crore. This was further augmented by Madura Micro Finance Ltd. acquisition," Udaya Kumar Hebbar, managing director and chief executive officer at CreditAccess Grameen, said.

The company's focus during the first quarter, he said, was on stabilising field collections, maintaining continuous customer connect and mobilising sufficient liquidity.

Despite several intermittent localised lockdowns/restrictions, the microfinance lender was able to improve collection efficiency to 74% by June and 76% by July, he said.

Even in case of Madura Micro Finance, there was a significant improvement in collection efficiency from 54% in June to 64% in July, the company said.