CreditAccess Grameen reported a profit after tax of ₹176 crore for Q2 FY23, nearly three-fold higher from the corresponding quarter of the previous year, and the highest-ever quarterly PAT till date.
The country’s largest NBFC-MFI saw its gross loan portfolio growing 24 per cent year-on-year to ₹16,539 crore as of September 30. This was led by a 12.5 per cent rise in disbursements to ₹4,375 crore during Q2 FY23. The company added over 2.8 lakh borrowers.
Net interest income (NII) increased by 40 per cent to ₹516 crore. Return on assets for the quarter improved to 4.0 per cent from 1.6 per cent a year ago.
This the company attributed to an increase of only 30 bps in the company’s cost of borrowing to 9.2 per cent, against a 70 bps expansion in NIM to 12.0 per cent over the last six months.
“There has been healthy growth across all parameters ranging from borrower addition, disbursements, collection efficiency, asset quality, net interest margin, return ratios and traction in foreign funding,“ said MD and CEO Udaya Kumar Hebbar.
“Given our strong control over the cost of borrowings coupled with one of the lowest lending rates in the industry, we are best placed to protect our Net Interest Margin (NIM), in a rising interest rate scenario,” he added.
Expected credit loss provisions for the quarter were ₹386 crore, with overall collection efficiency normalising to 97-98 per cent. Gross NPA ratio of the company improved significantly to 2.2 per cent from 7.7 per cent a year ago.
Capital adequacy ratio of the company was at 25 per cent as of September 30.
The company has secured a $ 35 million ESG-linked loan from the United States International Development Finance Corporation (DFC) for seven years.
Over the past 6 months, it has received sanctions of around $ 195 million, which has aided the company’s strategy of diversifying its liability profile, the company said, adding that it has strong visibility on foreign sourcing, backed by 38 per cent share in undrawn sanctions and 19 per cent share in sanctions in the pipeline.