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CreditAccess Grameen conducted a concall
on 21 July 2023 to discuss the financial results for the quarter ended June 2023
and prospects of the bank. Udaya Kumar Hebbar, MD and
CEO of CreditAccess Grameen of the addressed the call:
Highlights:
The company has witnessed
the strong growth momentum with the sharp increase in customer base. The strong
interest income growth given by the strong growth in the asset under management
The gross loan portfolio
grew 39.7% yoy to Rs 21814 crore end June 2023.
The company added 3.28
lakh customers in the first quarter leading to a total customer count of 44.23
lakh up 19.9% yoy. The branch network
has touched 1826 branches.
The company maintained the
loan growth guidance of 24-25% for FY2024.
The company aims to soon
surpass Rs 25000 crore loan portfolio mark during the 25th year of operations.
The next 4-5 years will see us doubling loan portfolio to over Rs 50,000 crore
as per our business plan by leveraging solid foundation and leadership position
in the microfinance industry.
The sharp 152% surge in
the net profit to Rs 348 crore in Q1FY24 led to RoA of 5.8% and RoE of 26.4%.
The average cost of
borrowings stood at 9.6% and marginal cost of borrowing stood at 9.7%, while
the margins expanded to 13%.
The company expects some
increase in cost of borrowing going forward with a rising share of long term
borrowings. The company is expecting 30-40 bps increase in cost of borrowing in
the next two quarters
The company would be going
for second tranche of NCD raising by November 2023
About 16% of the loan book
of the company is yet to reprice and would provide support to margins. The company
is maintaining the guidance of the net interest margin of 12-12.2% for FY2024.
The share of foreign
borrowing has expanded at 19% end June 2023 from 14% in the previous quarter with
39% of the borrowings coming from the foreign sources in Q1FY24.
The company would continue
to further diversify the sources of borrowings.
The company is expecting
marginal increase in the cost to income ratio going forward but would remain
within the guided range of 34-35%.
The collection efficiency
excluding arrears stood at 98.7% at the end of Q1FY24.
The provisions declined by
24.3% yoy from Rs 100.9 crore to Rs 76.4 crore, of which Rs 7.6 crore related
to the management overlay provisions. the bad debt recovery was at Rs 12 crore
and write offs at Rs 100.5 crore.
The capital position was
healthy with a CRAR of 24.4% end June 2023.
The company adds a new
branch once a branch exceeds 7000 customers.
The
company has piloted various new products and the company expects products such
as individual business loans, loan against property, two wheelers to pick up in
FY2024. The gold loans will continue to as a pilot program. The company also plans
to initiate a pilot for affordable housing loans. The new loans accounts for 1%
of the business end June 2023.
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