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Issuer Profile

17 May 2023

Credit Access Grameen Limited Credit Analysis

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During FY23, the company experienced significant growth, with net interest income increasing by 35% and net profit rising by 136% compared to that in FY22. Net interest margin stood at 11.16% during FY23.

author dp
Subhasis Mishra

Credit Access Grameen Limited is a leading Indian micro-finance institution in India. This company is the largest NBFC- MFI in India in terms of the gross loan portfolio as of March 2022. CA Grameen�s promoter is Credit Access India N.V., a multinational company who operates in the area of micro and small enterprise financing backed by institutional investors. As of March 31, 2023, the company has a gross loan portfolio worth Rs 210.31 billion.

Credit Rating-Credit Access Grameen Limited has been rated as A+ by ICRA & CRISIL while AA- by India Rating.

Credit Access Grameen Financial Performances

Parameters (Rs billion)

FY23

FY22

Growth

NII

22.34

16.53

35.15%

PAT

8.26

3.5

136.00%

Net Worth

51.07

41.67

GNPA

1.21%

3.44%

NNPA

0.42%

0.95%

CRAR

23.60%

22.80%

Gearing

3.2

3.1

NIM

11.16%

10.90%


Credit Access Grameen Ltd traded bond yield

Date

ISIN

Coupon (%)

Yield (%)

Maturity

02/May/23

INE741K07470

9.60

9.25

23/11/2025

02/May/23

INE741K07462

9.45

8.87

23/11/2024

03/May/23

INE741K07470

9.60

9.27

23/11/2025

04/May/23

INE741K07470

9.60

9.72

23/11/2025

04/May/23

INE741K07462

9.45

9.44

23/11/2024

08/May/23

INE741K07470

9.60

9.21

23/11/2025

09/May/23

INE741K07470

9.60

9.27

23/11/2025

10/May/23

INE741K07470

9.60

9.21

23/11/2025

11/May/23

INE741K07470

9.60

9.14

23/11/2025

11/May/23

INE741K07462

9.45

9.5

23/11/2024

12/May/23

INE741K07470

9.60

9.18

23/11/2025

15/May/23

INE741K07470

9.60

9.18

23/11/2025

15/May/23

INE741K07462

9.45

9.42

23/11/2024

16/May/23

INE741K07470

9.60

9.18

23/11/2025

Credit Positive-

  Leading market player

  Adequate Capitalization

  Improving Asset Quality

  Low leverage

Credit Negative-

  Risk of microfinance sector

  Geographical concentration of area of operation

  Policy Risk

Capitalization-As of 31st March 2023, the company�s net worth stood at Rs 51 billion while capital adequacy ratio came in at 23.6%. Leverage remained stable at 3.2 as of FY23 as compared to 3.1 as of FY22.

Operating performance- During FY23, the company experienced significant growth, with net interest income increasing by 35% and net profit rising by 136% compared to that in FY22. Net interest margin stood at 11.16% during FY23.

Performance Guidance for FY24-

Parameters

Projected growth for FY24

Loan Portfolio

24%-25%

NIM

12%-12.2%

Return on Asset

4.7%-4.9%

ROE

20%-21%

(Source: Company Presentation)

Disclaimer:
Information herein is believed to be reliable but Arjun Parthasarathy Editor: INRBONDS.com does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author(s) of the content published in the site INRBONDS.com may or may not have investments in the assets discussed in the pages/posts.

Copyright © INRBONDS.com by Arjun Parthasarathy 2019-2023

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