CreditAccess Grameen conducted a concall on 20 October 2023 to discuss the financial results for the quarter ended September 2023 and prospects of the bank. Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen of the addressed the call:

Highlights:

The company has added 3.36 lakh new customers in Q2FY2024, despite weak historically weak quarter, out of which 40% came from outside the top 3 states.

The overall customer base of the company grew 21% yoy to 4.6 million end September 2023.

The AUM of the company has surged 36% yoy end September 2023.

The company has entered into new states of Andhra Pradesh and Telangana with a contiguous district-based approach.

The company expects to maintain RoA of 5.4-5.6% and RoE of 24-25% in the medium to long term.

The net interest margins of the company improved to 13.1% in Q2FY2024 driven by lower interest income reversals and control on cost of borrowings.

The company expects the margins to ease ahead, as there is not much scope for yield improvement.

The collection efficiency stood at 98.5%.

The banks borrowings accounted for 53% of borrowings, Public NCDs 8%, ECBs 15%, securitization 7% etc.

The income from insurance distribution was at Rs 30 crore in Q2FY2024.

On the new businesses front, the LAP business has been shaping up well. The company expects to start home loan pilots in the current year. the company is not sure about if it wants to build the gold loan business.

The company is not looking at capital raising as the internal accruals are sufficient to fund the growth.

After the acquisition of Madura, the Madura branches in Tamil Nadu have become a part of the company branches.