Profit before tax climbed 64% year on year to Rs 475.65 crore in the quarter ended 31 December 2023.

Net interest income stood at Rs 802.4 crore in the third quarter of FY24, registering a growth of 41.6% from Rs 566.5 crore posted in Q3 FY23. Net interest margin improved to 13.1% in Q3 FY24 as compared to 11.9% recorded in the same period a year ago.

Pre-provision operating profit (PPOP) in Q3 FY24 was at Rs 379.5 crore, up 58.6% from Rs 601.8 crore reported in Q3 FY23.

During the quarter, gross loan portfolio was at Rs 23,382 crore, registering a growth of 31.5% YoY. Borrower base grew by 19.2% YoY to 46.93 lakh across 1,894 branches.

Collection efficiency (excluding arrears) stood at 98.3% in the December quarter.

The GNPA ratio declined to 0.97% in Q3 FY24 as against 1.71% in Q3 FY23. The net NPA ratio reduced to 0.29% in Q3 FY24 as compared to 0.59% posted in the similar quarter previous year.

The company’s return on assets (ROA) and return on equity (ROE) for Q3 FY24 improved to 5.5% & 23.6% respectively.

The firm said that it achieved liquidity of Rs 2,558.7 crore of cash, cash equivalents and investments, 10% of the total assets

Udaya Kumar Hebbar, managing director of CreditAccess Grameen, said, “Our profitability milestone touched a new mark as we recorded a PAT of Rs 1,049 crore for 9M FY24, higher than the PAT of Rs 826 crore for FY23. We completed a major technology project of upgrading our core banking solution (CBS), enabling significant business scalability and making us future ready. Technology is not just an enabler but a business partner and hence this is a big step in that direction.

The thrust of our growth story revolves around customer additions as we added 14.86 lakh customers in the past 1 year of which 44% came outside of the top 3 states. The customer base grew by 19.2% YoY to 46.93 lakh while the AUM grew 31.5% YoY to INR 23,382 crore at the end of Q3 FY24. Our proactive strategy of diversifying our liability profile has been executed very well over the past two years.

As of Dec-23 end, the share of bank borrowings stood at 50.4% while foreign borrowing was at 21.5%. We maintained a healthy positive ALM mismatch with the average maturity of assets at 18.7 months and the average maturity of liabilities at 24.4 months.”

Meanwhile, the company’s board approved a proposal for raising funds through public issue of non-convertible debentures in domestic market up to Rs 2,000 crore in different tranches.

Bengaluru-based CreditAccess Grameen is a microfinance institution, focused on providing micro-loans to women customers predominantly in rural areas across India. The company is now operating in 364 districts in 16 states (Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh & West Bengal) and one union territory (Puducherry) through 1,877 branches.

The scrip shed 0.11% to Rs 1680.70 on the BSE.