Net profit rose 8.3% to Rs 107.99 crore in Q3 December 2019 (Q3 FY20) from Rs 99.74 crore in Q3 December 2018 (Q3 FY19). Tax expense fell 29.72% to Rs 37.93 crore in Q3 December 2019 over Q3 December 2018.

Total income rose 29.3% to Rs 453.56 crore in Q3 FY20 as compared to Rs 350.76 crore in Q3 FY19.

Net interest income stood at Rs 300.9 crore in Q3 FY20, up by 28.1% from Rs 235 crore in Q3 FY19. Net interest margin (NIM) stood at 12.4% as on 31 December 2019 as against 12.3% as on 30 September 2019 and 13.2% as on 31 December 2018.

Cost to income ratio of the company stood at 34.8% as on 31 December 2019 as against 39.8% as on 30 September 2019 and 31.9% as on 31 December 2018. Cost to income ratio indicates the profitability of a financial services company – lower the ratio, more the profitable the company. If the ratio rises from one period to the next, it means that costs are rising at a higher rate than income highlighting the potential problems in the company.

The ratio of gross NPAs to gross advances stood at 0.85% as on 31 December 2019 as against 0.52% as on 30 September 2019 and 1.19% as on 31 December 2018.

CreditAccess Grameen's total branch tally stood at 928 branches in Q3 FY20 as compared to 887 branches in Q2 FY20 and 659 branches in Q3 FY20.

Commenting on the performance, Udaya Kumar Hebbar, managing director and CEO of CreditAccess Grameen, said, "We recorded robust business growth along with improved profitability in the third quarter. Gross loan portfolio increased by 45.8% YoY to Rs 8,872 crores driven by 22.5% YoY growth in our borrower base to 27.7 lakh borrowers. Disbursements grew by 68.9% YoY to Rs 2,977 crores. We believe that our expanded branch network and manpower will provide further strong growth in fourth quarter and next financial year."

"We witnessed some disturbance in certain districts in Karnataka and Maharashtra due to floods in second quarter and external interference caused by local elements in couple of districts in coastal Karnataka during third quarter. While we continued to maintain strong asset quality, our conservative GNPA recognition at 60 days DPD, and conservative provisioning policy has helped us to hold higher coverage against such GNPA. We have been trying to control these disturbances with continued support from microfinance industry associations and state administration. We continue to maintain constant engagement with our customers and build awareness on prompt repayment culture. This should help us to improve our collections over coming quarter and attain normalcy in the respective markets," he added.

CreditAccess Grameen is a microfinance institution.