Creditaccess Grameen Q2 results: Net profit nearly doubles to Rs 347 cr

Creditaccess Grameen on Friday said its net profit nearly doubled to Rs 347 crore in the September quarter, registering an on-year growth of 98.1 per cent driven by higher loan sales and resultant income.

The country's largest microfinance lender said its total income increased 53.2 per cent to Rs 1,247.6 crore, boosted by a 49.6 per cent jump in net interest income to Rs 772 crore.

The loan book rose 36 per cent to Rs 22,488 crore, while the borrower base grew 21.2 per cent to 46.03 lakh across 1,877 branches and collection efficiency improved to 98.7 per cent.

Credit loss provisions declined 9 per cent from Rs 105.4 crore to Rs 95.9 crore, during the reporting quarter and the total expected credit loss provisions stood at Rs 343.2 crore or 1.60 per cent of the assets.

Gross NPAs declined steeply to 0.77 per cent from 2.17 per cent, and net NPAs fell to 0.24 per cent from 0.77 per cent.

During the quarter, the lender wrote-offs Rs 76.5 crore of loans.

Its capital position remained healthy at 25 per cent of core capital.

Udaya Kumar Hebbar, the managing director said given the robust numbers so far, they have revised the FY24 loan growth guidance to 24-25 per cent, from 20 per cent earlier and Net interest margin (NIM) guidance to 12.7-12.8 per cent and credit cost at 1.6-1.8 per cent.