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CreditAccess Grameen vaults after Q4 results

Consolidated profit before tax tumbled 65.5% to Rs 40.52 crore in Q4 March 2020 as against Rs 117.60 crore in Q4 March 2019. Current tax expenses rose 5.3% to Rs 43.05 crore in Q4 March 2020 as compared to Rs 40.90 crore in Q4 March 2019. The Q4 result was declared on Saturday, 30 May 2020.

CreditAccess Grameen (CAGL) on 18 March 2020 completed the merger with Madura Micro Finance (MMFL). CAGL acquired 76.08% stake in MMFL by paying Rs 661.20 crore.

Gross loan portfolio grew by 67.4% YoY (year-on-year) to Rs 11,996 crore in FY20 from Rs 7,159 crore in FY19. Branch network grew by 107.9% YoY to 1,393 branches in FY20 as against 670 branches in FY19. Employee base grew by 79.8% YoY to 14,496 employees in FY20 over 8,064 employees in FY19. The share of rural borrowers increased to 86% in FY20 from 82% in FY19. Higher district penetration with 5.6 branches per district as compared to 4.3 in prior year.

Speaking on the Q4 performance, Udaya Kumar Hebbar, the managing director (MD) and chief executive officer (CEO) of CreditAccess Grameen, has said that: "We recorded strong business growth, with our standalone loan portfolio up 38.2% YoY to Rs 9,896 crore and borrower base up 17.6% YoY to 29.1 lakh borrowers owing to large number of branches opened during the year. This was further augmented by MMFL acquisition, leading to consolidated loan portfolio growth of 67.6% YoY to Rs 11,996 crore and 64.2% YoY growth in our borrower base to 40.1 lakh. Our consolidated branch network now stands at 1,393 branches, which includes 929 CAGL branches and 464 MMFL branches. With this transaction, we are the largest microfinance company in India, with leadership position in mature microfinance states of Karnataka, Maharashtra and Tamil Nadu, whilst building our presence across pan India. Our expanded branch network, seasoned manpower and experienced management team will help us drive our growth over coming years."

"In the wake of COVID-19 pandemic affecting India's macroeconomic activities beginning from March 2020, we took necessary measures to ensure well-being and safety of our employees and customers, while abiding by all regulatory guidelines. With over 98% of our branches being operational with over 90% staff as on date, we are looking forward to resuming our collections& disbursements from 1st June onwards. Over 70% of our customers are positive about not opting for further moratorium, and about 20% of them wanted a few more weeks to start the transactions. This leaves close to 10% of our borrowers who might opt for further moratorium. We are predominantly present in rural markets which have always displayed strong resilience to external disturbances. Our near-term focus will be on ensuring healthy liquidity position and timely collections from field. We are well-positioned to demonstrate faster recovery and get back on our growth trajectory."

CreditAccess Grameen is an Indian microfinance institution headquartered in Bengaluru, focused on providing micro-loans to women customers predominantly in rural areas across India. The company is now operating in 230 districts in the 13 states (Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala, Goa, Gujarat, Rajasthan, Uttar Pradesh, Bihar and Jharkhand) and one union territory (Puducherry) in India through 929 branches.



Source: Capitalmarket.com