CreditAccess Grameen reports 22% decline in Q1 net profit at Rs 75 crore

Microfinance lender CreditAccess Grameen Ltd (CAGL) reported over 22 per cent decline in consolidated net profit at Rs 75 crore in April-June quarter.

The lender had registered a net profit of Rs 96 crore in the corresponding quarter of the previous fiscal year.

Net interest income during April-June period of 2020-21 jumped 55.2 per cent to Rs 383.20 crore from Rs 246.90 crore in the same period of 2018-19, CAGL said in a release.

Gross loan portfolio grew 53.9 per cent to Rs 11,724 crore during the quarter under review from Rs 7,619 crore a year ago, it added.

Borrowers grew by 56.4 per cent to 40.1 lakh from 25.6 lakh.

The company said it is well capitalised, with standalone capital to risk weighted assets ratio of 23.7 per cent.

"We recorded strong business growth, with our standalone loan portfolio up 27 per cent year-on-year to Rs 9,680 crore. This was further augmented by MMFL (Madura Micro Finance Ltd) acquisition," CAGL Managing Director and CEO Udaya Kumar Hebbar said.

He said the company's focus during the first quarter was on stabilising field collections, maintaining continuous customer connect and mobilising sufficient liquidity.

Despite several intermittent localised lockdowns/restrictions, CAGL was able to improve collection efficiency to 74 per cent by June and 76 per cent by July, he said.

Even in case of MMFL, there was a significant improvement in collection efficiency from 54 per cent in June to 64 per cent in July, the company said.