Completion of 25 years of Inclusive Finance Journey
FinTech BizNews Service
Mumbai, May 7, 2024: CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770, ‘CA Grameen’), the country’s largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), today announced its audited financial performance for the fourth quarter and financial year ending 31 March 2024.
Business Highlights: Q4 FY24
· GLP grew by 27.0% YoY from INR 21,031 crore to INR 26,714 crore
· Borrower base grew by 15.3% YoY from 42.64 lakh to 49.18 lakh across 1,967 branches
· Collection Efficiency of 98.3% (excl. arrears)
Financial Highlights: Q4 FY24
· Total income increased by 36.8% YoY from INR 1,066.2 crore to INR 1,459.1 crore
· Net interest income (NII) increased by 33.7% YoY from INR 689.8 crore to INR 921.9 crore
· INR 26 crore provision towards long-term incentives and one-time special bonus for employees celebrating 25th year of operations
· Pre-provision operating profit (PPOP) increased by 35.8% YoY from INR 502.9 crore to INR 682.8 crore
· Impairment of financial instruments increased by 45.6% YoY from INR 105.3 crore to INR 153.3 crore
o Total ECL provisions were INR 503.4 crore (1.95%) against GNPA (largely @ 60+ dpd) of 1.18%, and PAR 90+ of 0.94%. NNPA stood at 0.35% and write-offs were INR 60.6 crore
· Profit After Tax (PAT) increased by 33.9% YoY from INR 296.6 crore to INR 397.1 crore
· Robust liquidity of INR 2,752.8 crore of cash, cash equivalents, and investments, 9.5% of the total assets
· Healthy capital position with a CRAR of 23.1%
· Credit Rating: AA-/Stable by CRISIL, ICRA & India Ratings
· Declared one-time final dividend of INR 10 per share (11% dividend payout ratio), subject to shareholders’ approval at the ensuing annual general meeting of the company towards “Silver Jubilee Celebrations”
Financial Highlights: FY24
· Total income increased by 45.7% YoY from INR 3,550.8 crore to INR 5,172.6 crore
· NII increased by 45.9% YoY from INR 2,234.0 crore to INR 3,259.6 crore
· PPOP increased by 58.7% YoY from INR 1,506.4 crore to INR 2,390.9 crore
· PAT increased by 75.0% YoY from INR 826.1 crore to INR 1,445.9 crore
PAT increased by 75.0% YoY from INR 826.1 crore to INR 1,445.9 crore
Key Metrics: Q4 FY24
Particulars | Q4 FY24 | Q4 FY23 | YoY % |
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Gross Loan Portfolio (INR Cr) | 26,714 | 21,031 | +27.0% | |
Borrowers (Lakh) | 49.18 | 42.64 | +15.3% |
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Branches | 1,967 | 1,786 | +10.1% |
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Particulars (INR Cr) | Q4 FY24 | Q4 FY23 | YoY% |
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Net Interest Income (NII) | 921.9 | 689.8 | +33.7% |
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Pre-Provision Operating Profit (PPOP) | 682.8 | 502.9 | +35.8% |
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| 397.1 | 296.6 | +33.9% |
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Key Ratios | Q4 FY24 | Q4 FY23 | YoY% |
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Interest Spread | 11.2% | 10.2% | +98 bps |
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Net Interest Margin (NIM) | 13.1% | 12.2% | +91 bps |
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Cost/Income Ratio | 30.1% | 30.2% | -10 bps |
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Opex/GLP Ratio | 4.7% | 4.5% | +21 bps |
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Gross NPA | 1.18% | 1.21% | -4 bps |
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Net NPA | 0.35% | 0.42% | -7 bps |
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Return on Assets (ROA) | 5.7% | 5.5% | +15 bps |
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Return on equity (ROE) | 24.9% | 24.0% | +97 bps |
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Commenting on the performance, Mr. Udaya Kumar Hebbar, Managing Director of CreditAccess Grameen, said, “We ended the FY24, completing 25 years of our operations, on a solid footing having registered 27.0% YoY growth in the AUM to INR 26,714 crore. The growth was well supported by a healthy increase in the customer base by 15.3% YoY to 49.18 lakh. We added over 13.6 lakh customers during FY24, maintaining our monthly average customer addition run-rate of 1.1 lakh. Our NIMs remained steady at 13.0% for FY24 while being the lowest-cost lender in the microfinance industry, in line with our ethos of serving responsibly. It is encouraging to be awarded “Great Place to Work” for the fifth time and ranked amongst the top 25 Best Companies to Work for in the BFSI space – 2024.
The Q4 FY24 PAT stood at INR 397 crore, resulting in ROA of 5.7% and ROE of 24.9%. In FY24 we delivered PAT of INR 1,446 crore, ROA of 5.6%, and ROE of 24.9%. Our distinctive methodology for conducting the business in the form of the classical JLG model, diverse product suite, flexibility in repayments, and continuous district-based expansion approach, supported by a strong corporate governance structure, ensures stability, and enhances resiliency. The cross-cyclical ROA and cross-cyclical ROE from FY17 to FY24, despite facing three external shocks, stood at 3.6% and 15.0% respectively. We are targeting to achieve a loan portfolio growth of 23%-24% in FY25 while delivering ROA of 5.4%-5.5% and ROE of 23.0%-23.5%.”
