Net interest income rose 65.4% to Rs 763.3 crore in Q1 FY24 from Rs 461.5 crore in Q1 FY23.

Pre-provision operating profit (PPOP) increased by 87.7% YoY from Rs 289.7 crore to Rs 543.8 crore.

Net interest margin increased by 195 bps year-on-year to 13%. The cost/income ratio decreased 893 bps YoY to 30.8%, while the Opex/GLP Ratio decreased 22 bps YoY to 4.5%.

Gross Non-Performing Assets (GNPA) decreased 221 bps YoY to 0.89% and Net Non-Performing Assets (NNPA) reduced 88 bps YoY to 0.27%.

Return on Assets (ROA) increased 278 bps to 5.8%, while Return on Equity (ROE) improved 1,337 bps to 26.4%.

The Gross Loan Portfolio (GLP) experienced a year-on-year growth of 39.7%, increasing from Rs 15,615 crore in Q1 FY23 to Rs 21,814 crore in Q1 FY24. The number of borrowers expanded by 19.9% compared to the previous year, reaching 44.2 lakh across 1,826 branches. The collection efficiency, excluding arrears, stood at 98.7%.

The decline in impairment of financial instruments was 24.3% year-on-year, decreasing from Rs 100.9 crore to Rs 76.4 crore. The total Expected Credit Loss (ECL) provisions amounted to Rs 323.7 crore, equivalent to 1.59% of Gross Non-Performing Assets (GNPA), primarily comprising loans with a delay of 60 days or more, and 0.89% 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.

Udaya Kumar Hebbar, MD and CEO of CreditAccess Grameen said, “We have entered the 25th year of excellence in women empowerment with strong business momentum in the first quarter on the back of a growing rural economy. We aim to soon surpass Rs 25,000 crore loan portfolio mark during the 25th year of our operations. The next 4-5 years will see us doubling our loan portfolio to over INR 50,000 crore as per our business plan by leveraging our solid foundation and leadership position in the microfinance industry. Our gross loan portfolio grew 39.7% YoY to INR 21,814 crore at the end of June 2023.

We have added 3.28 lakh customers in the first quarter leading to a total customer count of 44.23 lakh. Our philosophy of deep rural presence with disciplined operational measures continues to reward us as the collection efficiency (excluding arrears) stood at 98.7% at the end of Q1 FY24.”

Meanwhile, the board approved re-designation of Udya Kumar Hebbar as managing director of the company with effect from 1 August 2023.

Further, the board has also approved the appointment of Ganesh Narayanan as Chief Executive Officer (CEO) of the company for 5 years with effect from 1 August 2023.

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.

The scrip hit record high at Rs 1425.20 in intraday today.