CreditAccess Grameen trades flat after Q2 results

Shares of micro financier, CreditAccess Grameen were down 0.12% at Rs 643.20 after the company announced its Q2 earnings after market hours on Wednesday.

On standalone basis, the company's net profit was up 37.3% to Rs 100.88 crore on a 26.6% rise in total income to Rs 392.65 in Q2 September 2019 as against Q2 September 2018.

Net Interest Income (NII) rose 26.3% YoY to Rs 251 crore in Q2 September 2019. Pre-Provision Operating Profit rose 18.2% YoY to Rs 154.7 crore in Q2 September 2019.

Gross Loan Portfolio (GLP) increased 36.4% to 7,904.8 crore in Q2 September 2019 over in Q2 September 2018.

Commenting on the performance, Udaya Kumar Hebbar, Managing Director and CEO of CreditAccess Grameen, said, "We displayed resilient performance in second quarter in the face of severe floods in certain states / districts which impacted the day to day life for some of our borrowers. Our gross loan portfolio increased by 36.4% YoY driven by 27.1% YoY growth in our borrower base. The growth is in line with the trend of Q2 in our business, which is slightly lower compared to other quarters due to peak monsoon season. Our branch network increased by 35.2% YoY as we opened 217 new branches during H1 FY20. Our focus during H2 FY20 will be on ramping up these branches, leading to robust AUM growth in H2 FY20.

CreditAccess is a microfinance institution providing a wide range of financial services to the rural poor and low-income households.

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