Comments
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.
Also see: How to make public debt sustainable
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.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.