17 May 2023
Credit Access Grameen Limited Credit Analysis
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.
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)
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South Indian Bank Ltd
9 Sept 2020
Subhasis Mishra
