CreditAccess Grameen Q3 net profit surges 85% YoY to Rs 217 cr in highest-ever quarterly profit

The country's largest NBFC-MFI CreditAccess Grameen on Tuesday reported a 85.3% year-on-year surge in third quarter net profit at Rs 217 crore, beating market expectations. The rise in profit was backed by robust business growth and lower credit cost.

This is the highest-ever quarterly net profit for the lender.

"We are confident of sustaining this profitability trend and further improving it over the coming quarters," managing director Udaya Kumar Hebbar said..

Net interest margin for the quarter was 11.9%, which is 44 basis points higher than the NIM in the year ago period but 11 bps lower than what it was in the preceding quarter.

Its net interest income rose by 38% at Rs 567 crore. Total income grew by 32% at Rs 910 crore. Impairment of financial instruments dipped by 24% at Rs 89.4 crore. Pre-provision operating profit increased by 38.7% year-on-year at Rs 380 crore.

The lender's gross loan portfolio grew 22% year-on-year to Rs 17786 crore, after writing off sticky loans of Rs 131 crore. Bad loan write-off along with steady recovery helped improvement in the non-performing assets ratios. The gross NPA ratio was at 1.7% as of end-December 2022, as against 6% a year prior to that. The net ratio stood at 0.6% against 2.6%.

“The third quarter witnessed robust sequential improvement in business momentum, operating efficiency, asset quality and return ratios," Hebbar said. "
We foresee a very exciting future for the microfinance industry, and we shall continue to further strengthen our leadership position,he said.