Shares of CreditAccess Grameen Ltd rallied 7 percent after robust fourth quarter results. At 9:24am on Wednesday, the stock traded 7 percent higher at Rs 1,165.
CreditAccess Grameen on May 16 reported an 86.4 percent jump in net profit at Rs 296.6 crore for the fourth quarter ended March 31, 2023Ā fromĀ Rs 159 crore posted a year back.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, surged 29.7 percent to Rs 719.8 crore from Rs 554.7 crore in the corresponding period last fiscal.
The total income increased 29.3 percent year-on-year from Rs 824.5 crore to Rs 1,066.2 crore and pre-provision operating profit (PPOP) increased by 36.3 percent from Rs 368.8 crore to Rs 502.9 crore over the last one year. The impairment of financial instruments declined by 30.3 percent year-on-year from Rs 151.0 crore to Rs 105.3 crore.
Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said that the firms gross loan portfolio grew by 26.7 percent YoY to Rs 21,031 crore at the end of March 2023. The micro finance institution added nearly 12.3 lakh new borrowers in FY23, resulting in a borrower base of 42.64 lakh. "For FY24, we are sanguine to achieve a growth of 24-25 percent in the gross loan portfolio," CreditAccess Grameen said.
ICICI direct on CreditAccess Grameen
"The performance is in line with management guidance. We believe CreditAccess Gramin is well positioned to capture huge untapped opportunity in micro finance space via deeper penetration in new, existing geographies and increase in customer base."
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