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