CreditAccess Grameen, India’s largest NBFC -Micro Finance Institution (NBFC-MFI) posted a very good performance for Q4FY23. Its PAT for the quarter rose 86% (YoY) to Rs.297 crore.

Highlights of its Q4FY23 earnings (YoY):

• GLP grew by 27% Rs.21,031 crore

• Borrower base grew by 11.5% to 42.6 lakh across 1,786 branches

• Collection Efficiency of 98.2% (excl. arrears) and 98.4% (incl. arrears)

• Total income increased by 29% to Rs.1,066.2 crore

• Net interest income (NII) increased by 33% to Rs.690 crore

• Pre-provision operating profit (PPOP) increased by 36% to Rs.503 crore

• Impairment of financial instruments declined by 30% to Rs.105 crore

• Gross NPA came down from 3.61% to 1.21%.

• Net NPA came down from 1.28% to 0.42%.

Giving guidance for the current fiscal, FY24, the company estimates to achieve a growth of 24%-25% in the gross loan portfolio, NIMs of 12%-12.2% with a steady state credit cost of 1.6%-1.8%, translating into ROA of 4.7%-4.9% and ROE of 20.0%-21.0%.

The results have gone down well with the market with the stock price rising 9% to hit a new 52-week high today at Rs.1183 on the back of a 5x jump in volumes.