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 in micro and small enterprise financing backed by institutional investors. As of 30th June 2023, its promoter shareholding stood at 66.77%. As of June 30, 2023, the company has gross loan portfolio worth of Rs 218 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) |
Q1FY24 |
Q4FY23 |
Q1FY23 |
|
Interest Income |
7.63 |
6.89 |
4.61 |
|
PAT |
3.49 |
2.97 |
1.39 |
|
Net Worth |
54.49 |
51.07 |
43.36 |
|
Loan portfolio |
218.14 |
210.3 |
156.15 |
|
GNPA |
0.89% |
1.21% |
3.01% |
|
NNPA |
0.27% |
0.42% |
2.33% |
|
CRAR |
24.40% |
23.60% |
24.70% |
|
Gearing |
3.1 |
3.2 |
2.7 |
|
Net Profit Margin |
13.00% |
12.20% |
11.10% |
|
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% |
Performance during Q1FY24
· Net Interest Income rose by 65% on yearly basis while 10.7% on quarterly basis
· Net profit rose by 151% y-o-y while 17.5% q-o-q
· Gross loan portfolio rose by 39.7% y-o-y to Rs 218 billion
· NIM stood at 13% against 12.2% in previous quarter
· GNPA improved to 0.89% as compared to 3.11% as of Q1FY23
· CRAR at 24.4%
Credit Positive-
Ø Leading market player
Ø Adequate Capitalization
Ø Improving Asset Quality
Ø Low leverage
Credit Negative-
Ø Risk of microfinance sector
Ø Geographical concentration of area of operation
Ø 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)