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CreditAccess Grameen reported a 37 per cent increase in second quarter net profit at ₹101 crore against ₹73.50 crore in the year-ago quarter, supported by healthy net interest income and lower tax burden.
The Bengaluru-based microfinance institution’s net interest income was up 26 per cent year-on-year (y-o-y) at ₹251 crore. Total tax expense was lower at ₹26 crore, against ₹41 crore in the year-ago period. Gross Loan Portfolio was up 36 per cent y-o-y to stand at ₹7,905 crore as of September-end 2019.
Net interest margin edged down to 12.1 per cent in the reporting quarter, against 12.9 per cent in the year-ago quarter. Gross non-performing assets declined to 0.52 per cent of gross advances as on September-end 2019, against 1.01 per cent as on September-end 2018.
Udaya Kumar Hebbar, Managing Director and CEO, said: “We displayed resilient performance in second quarter in the face of severe floods in certain States / districts, which impacted the day-to-day life for some of our borrowers.
“Our branch network increased by 35.2 per cent y-o-y as we opened 217 new branches during H1 (April-September) FY20. Our focus during H2 FY20 will be on ramping up these branches, leading to robust assets under management growth in H2 FY20.”
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