CreditAccess Grameen Q2 profit jumps fourfold to Rs 502 crore
CreditAccess Grameen reported a fourfold rise in Q2 net profit to Rs 502 crore, driven by higher income, lower expenses and credit costs. Improved asset quality prompted upward revisions to profitability guidance, while assets under management grew 19.5%.
CreditAccess Grameen reported a four-fold surge in second quarter net profit at Rs 502 crore as compared with Rs 126 crore, backed by rise in earnings and a drop in expenses including credit cost.
The country's largest non-banking financial company-microfinance institution (NBFC-MFI) revised its return on assets guidance upwards to 5.2-5.8% from an earlier projection of 4.0-4.8% and return on equity guidance to 21–24% from 16-20%.
Its total income jumped 26% at Rs 1905 crore for the quarter from Rs 1509 crore in the year-ago period. Total expenses stood lower at Rs 1234 crore against Rs 1340 crore. The lender provided Rs 299 crore to cover credit risk for the quarter as compared with Rs 526 crore provided a year prior.
The gross non-performing assets ratio fell to 1.79% at the end of September from 4.06% a year back.
The lender's assets under management grew 19.5% year-on-year to Rs 30,946 crore. The management has guided the annual AUM growth at 20-25% and credit cost at 3-4%.
"We will remain cautious in districts showing drought-related challenges, while meeting the growing credit needs of our seasoned customers, and stepping up new customer acquisition," managing director Ganesh Narayanan said.
The company has reduced loan pricing by 50 basis points from October.
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