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(08 May 2024, 10:45)

CreditAccess Grameen rises as Q4 PAT climbs 34% YoY

CreditAccess Grameen added 1.76% to Rs 1,445.80 after the company’s consolidated net profit jumped 33.89% to Rs 397.08 crore on 36.85% rise in total income to Rs 1,459.10 crore in Q4 FY24 over Q4 FY23.


Profit before tax was at Rs 529.46 crore in the March quarter, up 33.18 % from Rs 397.55 crore posted in Q4 FY23.

Net interest income (NII) climbed 33.7% year on year to Rs 921.9 crore during the quarter. Net Interest Margin (NIM) improved to 13.1% in Q4 FY24, up by 91 bps from 12.1% recorded in the same period a year ago.

Pre-provision operating profit (PPOP) in Q4 FY24 was at Rs 682.8 crore, up 35.8% from Rs 502.9 crore reported in Q4 FY23.

During the quarter, gross loan portfolio stood at Rs 26,714 crore, registering a growth of 27% YoY. Borrower base grew by 15.3% YoY to 49.18 lakh across 1,967 branches.

Collection efficiency (excluding arrears) stood at 98.3% in the March quarter.

The GNPA ratio declined to 1.18% in Q4 FY24 as against 1.21% in Q4 FY23. The net NPA ratio reduced to 0.35% in Q3 FY24 as compared to 0.42% posted in the similar quarter previous year.

The company’s return on assets (ROA) and return on equity (ROE) for Q3 FY24 improved to 5.7% & 24.9% respectively.

The firm said that it achieved liquidity of Rs 2,752.8 crore of cash, cash equivalents, and investments, 9.5% of the total assets.

On full year basis, the company's consolidated net profit soared 75.04% to Rs 1,445.93 crore on 45.68% jump in revenue to Rs 5,172.65crore in FY24 over FY23.

Meanwhile, the company’s board recommended a final dividend of Rs 10 per equity share for the financial year 2023-24.

Udaya Kumar Hebbar, managing director of CreditAccess Grameen, said, “We ended the FY24, completing 25 years of our operations, on a solid footing having registered 27% YoY growth in the AUM to Rs 26,714 crore. The growth was well supported by a healthy increase in the customer base by 15.3% YoY to 49.18 lakh. We added over 13.6 lakh customers during FY24, maintaining our monthly average customer addition run-rate of 1.1 lakh. Our NIMs remained steady at 13% for FY24 while being the lowest-cost lender in the microfinance industry, in line with our ethos of serving responsibly.

The cross-cyclical ROA and cross-cyclical ROE from FY17 to FY24, despite facing three external shocks, stood at 3.6% and 15.0% respectively. We are targeting to achieve a loan portfolio growth of 23%-24% in FY25 while delivering ROA of 5.4%-5.5% and ROE of 23.0%-23.5%.”

Bengaluru-based CreditAccess Grameen is a microfinance institution, focused on providing micro-loans to women customers predominantly in rural areas across India. The company is now operating in 383 districts in 16 states (Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh & West Bengal) and one union territory (Puducherry) through 1,967 branches.


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