CreditAccess Grameen sees default risk dip in 30-day bucket in August

Collection efficiency rises to 99% in August

Microfinance firm CreditAccess Grameen reported a dip in portfolio at risk (PAR) of default in 30 days bucket sequentially to 11 per cent in August 2021 from 12.9 per cent in July 2021. The PAR was at 13.8 per cent in June. The fall in PAR value reflects a gradual improvement in collections and incremental easing of asset quality pressures.

However, PAR in 60 days outstanding pool moved up to 8.3 in August from 8.1 per cent in July. PAR for 60 day bucket was 7.8 per cent in June 2021, according to filing with BSE. The same trend prevailed in 90-day PAR loans with a reading of 6.3 per cent in August, up from 5.7 July and 3.8 per cent June 2021.

The loan portfolio of MFIs was hit by economic disruption during the second wave of pandemic in April-June period. Things began to change with easing of localised curbs imposed to contain the spread of pandemic.

The collection efficiency, including arrears, was 99 per cent in August, up from 97 in July and 84 per cent in June 2021.

The monthly disbursements also rose to Rs 1,188 crore in August from Rs 1,107 crore in July and Rs 308 crore in June. The Gross Loan Portfolio (GLP) rose by 18.8 per cent, on Year-on-year basis, to Rs 11,155 crore at the end of August 2021, up from Rs 10,885 crore in July and Rs 10,625 crore in June 2021. The activity level is gradually moving to March 2021 level.