During the quarter, the company's net interest margin (NIM) increased 90 basis points (bps) year-on-year (YoY) to 12.2%. The cost/income ratio decreased 360 bps YoY to 30.2%, while the Opex/GLP Ratio decreased 34 bps YoY to 4.5%.

Gross Non-Performing Assets (GNPA) decreased 240 bps YoY to 1.21% and Net Non-Performing Assets (NNPA) reduced 86 bps YoY to 0.42%.

Return on Assets (ROA) increased 187 bps to 5.5%, while Return on Equity (ROE) improved 836 bps to 24%.

The Gross Loan Portfolio (GLP) experienced a year-on-year growth of 26.7%, increasing from Rs 16,599 crore in Q4 FY22 to Rs 21,031 crore in Q4 FY23. The number of borrowers expanded by 11.5% compared to the previous year, reaching 42.6 lakh across 1,786 branches. The collection efficiency, excluding arrears, stood at 98.2%, while including arrears, it reached 98.4%.

The decline in impairment of financial instruments was 30.3% year-on-year, decreasing from Rs 151 crore to Rs 105.3 crore. The total Expected Credit Loss (ECL) provisions amounted to Rs 347.8 crore, equivalent to 1.78% of Gross Non-Performing Assets (GNPA), primarily comprising loans with a delay of 60 days or more, and 0.96% of loans with a delay of 90 days or more. The Net Non-Performing Assets (NNPA) further reduced to 0.42%. Write-offs accounted for Rs 102.1 crore.

In the fiscal year 2023, the company's total income saw a year-on-year increase of 29.1%, rising from Rs 2,750.1 crore to Rs 3,550.8 crore. Net Interest Income (NII) experienced a year-on-year growth of 35.1%, increasing from Rs 1,653.1 crore to Rs 2,234.0 crore. PPOP witnessed a year-on-year increase of 39.8%, rising from Rs 1,077.5 crore to Rs 1,506.4 crore. Profit after Tax (PAT) showed a significant year-on-year growth of 134.0%, increasing from Rs 353.1 crore to Rs 826.1 crore.

Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen, said, “FY23 has been a historic year in our humble journey where we achieved numerous milestones. This includes becoming the first pure-play microfinance institution in the country to cross the INR 20,000 crore AUM mark, credit rating upgrade from ICRA and Ind-Ra to AA- (stable), ESG ratings from Sustainalytics and S&P Global, maiden Public NCD issue worth INR 500 crore, first-of-its kind USD 35 million direct funding from DFC (USA), successful completion of CA Grameen's merger with Madura Micro Finance.

We have once again met our annual performance guidance. Our gross loan portfolio grew by 26.7% YoY to INR 21,031 crore at the end of March 2023. We added nearly 12.3 lakh new borrowers in FY23 resulting in a borrower base of 42.64 lakh. We delivered a quarterly net profit of INR 297 crore, resulting in ROA of 5.5% and ROE of 24.0%. For FY23, PAT, ROA, and ROE stood at INR 826 crore, 4.2%, and 18.0% respectively.

For FY24, we are sanguine to achieve a growth of 24%-25% in the gross loan portfolio, NIMs of 12%-12.2% with a steady state credit cost of 1.6%-1.8%, translating into ROA of 4.7%-4.9% and ROE of 20.0%-21.0%."

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 352 districts in 14 states (Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala, Goa, Gujarat, Rajasthan, Uttar Pradesh, Bihar, Jharkhand, and West Bengal) and one union territory (Puducherry) in India through 1,786 branches.