Bengaluru, May 2023: CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770, ‘CA Grameen’), the country’s largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), today announced its audited financial performance for the fourth quarter and financial year ending 31 March 2023.
Business Highlights: Q4 FY23
GLP grew by 26.7% YoY from INR 16,599 crore to INR 21,031 crore
- The borrower base grew by 11.5% YoY to 42.6 lacks across 1,786 branches
Collection Efficiency of 98.2% (excl. arrears) and 98.4% (incl. arrears)
Financial Highlights: Q4 FY23
- Total income increased by 29.3% YoY from INR 824.5 crore to INR 1,066.2 crore
- Net interest income (NII) increased by 32.7% YoY from INR 519.6 crore to INR 689.8 crore
Pre-provision operating profit (PPOP) increased by 36.3% YoY from INR 368.8 crore to INR 502.9 crore
- Impairment of financial instruments declined by 30.3% YoY from INR 151.0 crore to INR 105.3 crore
Total ECL provisions were INR 347.8 crore (1.78%) against GNPA (largely @ 60+ dpd) of 1.21%, and PAR 90+ of 0.96%. NNPA further reduced to 0.42%
Write-offs were INR 102.1 crore
Profit After Tax (PAT) increased by 86.4% YoY from INR 159.1 crore to INR 296.6 crore
Robust liquidity of INR 1,891.0 crore of cash & cash equivalents, amounting to 8.7% of the total assets
Healthy capital position with a CRAR of 23.6%
Credit Rating: AA-/Stable by ICRA & India Ratings, A+/Positive by CRISIL
Financial Highlights: FY23
- Total income increased by 29.1% YoY from INR 2,750.1 crore to INR 3,550.8 crore
NII increased by 35.1% YoY from INR 1,653.1 crore to INR 2,234.0 crore
- PPOP increased by 39.8% YoY from INR 1,077.5 crore to INR 1,506.4 crore
PAT increased by 134.0% YoY from INR 353.1 crore to INR 826.1 crore
Commenting on the performance, Mr. Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said, “FY23 has been a historic year in our humble journey where we achieved numerous milestones. This includes becoming the first pure-play microfinance institution in the country to cross the INR 20,000 crore AUM mark, credit rating upgrade from ICRA and Ind-Ra to AA- (stable), ESG ratings from Sustainalytics and S&P Global, maiden Public NCD issue worth INR 500 crore, first-of-it’s kind USD 35 million direct funding from DFC (USA), successful completion of CA Grameen’s merger with Madura Micro Finance, featuring in the top five of Fortune India Next 500 list, and “Great Place to Work” certification for 4th consecutive year. Our ethos of sticking to basics via the classical JLG model and strong execution strength has resulted in the best-in-class asset quality with collection efficiency at over 98% (excl. arrears). Our GNPA and Net NPA (predominantly at 60+ dpd) stood at 1.21% and 0.42% respectively, while PAR 90+ was at only 0.96%.
We have once again met our annual performance guidance. Our gross loan portfolio grew by 26.7% YoY to INR 21,031 crore at the end of March 2023. We added nearly 12.3 lakh new borrowers in FY23 resulting in a borrower base of 42.64 lakh. We delivered a quarterly net profit of INR 297 crore, resulting in ROA of 5.5% and ROE of 24.0%. For FY23, PAT, ROA, and ROE stood at INR 826 crore, 4.2%, and 18.0% respectively. Our expansive presence across India, differentiated operating model, customised product offerings, highly scalable technology stack, and strong balance sheet place us at the forefront to establish ourselves as the preferred financial partner to millions of underserved low-income households.
For FY24, we are sanguine to achieve a growth of 24%-25% in the gross loan portfolio, NIMs of 12%-12.2% with a steady state credit cost of 1.6%-1.8%, translating into ROA of 4.7%-4.9% and ROE of 20.0%-21.0%.”