CreditAccess Grameen Q4 Review - Precautionary Provisions Impacted Earnings: ICICI Securities
A cashier examines Indian rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

CreditAccess Grameen Q4 Review - Precautionary Provisions Impacted Earnings: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

CreditAccess Grameen Ltd.’s Q4 FY21 financial performance must be seen with respect to the management’s precautionary stance – writing-off loans worth Rs 2.8 billion, recognising the entire restructuring pool of Rs 0.7 billion (0.7% of loans) as stage-III and providing ~70% on that pool and creating Covid-19 buffer of ~Rs 1.1 billion (0.9% of loans) to cushion earnings from the adverse impact of the second wave.

Collection continued to trend well, reaching 94% by March 2021 from 91% in December 2021; however, intermittent lockdowns, restrictions on movement in various states due to resurgence of Covid-19 cases may impact collections in Q1 FY22.

Click on the attachment to read the full report:

ICICI Securities CreditAccess Grameen Q4FY21 Results Update.pdf

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