Credit Access Grameen Ltd (CAGL) has reported a 8 per cent year-on-year (YoY) drop in its second quarter standalone net profit at ₹72 crore against ₹78.2 crore in the year ago quarter.

Provisions hit bottomline

The Bengaluru-headquartered microfinance institution’s bottomline was weighed down by a 39.5 per cent YoY increase in loan loss provisions at ₹91.1 crore against ₹65.3 crore in the year-ago period.

Pre-provisioning operating profit, however, was up 10.6 per cent YoY to ₹188.2 crore from ₹170.1 crore a year ago.

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Loan disbursements jumped to ₹3,412 crore against ₹907 crore in the preceding quarter and ₹1,420 crore in the corresponding quarter of the previous fiscal.

Gross loan portflio (GLP) increased 21.5 per cent YoY to ₹11,184 crore as at September-end 2021.

NPAs decline

Gross non-performing assets (GNPAs) declined to 7.18 per cent of gross advances by September-end 2021 against 8.12 per cent in the previous quarter. However, they were higher than Q2FY21’s 5.18 per cent.

Restructured loans

CAGL restructured loans aggregating ₹99.1 crore in the reporting quarter against ₹6.9 crore in the preceding quarter. Overall, the MFI has restructured loans aggregating ₹183.1 crore (incluing restructuring in FY21).

Total provisioning on restructured loans, which account for 1.5 per cent of GLP as on September-end 2021, is 28.8 per cent.

Net interest margin improved a shade to 11.3 per cent from 11.2 per cent a year ago.

CAGL’s consolidated net profit, including the results of three subsidiaries — Madura Micro Finance, Madura Micro Education and CreditAccess India Foundation — declined 25 per cent YoY to ₹59.7 crore against ₹79.6 crore.