CreditAccess Grameen Q1 net profit jumps 8-fold to Rs 493 cr

Synopsis

CreditAccess Grameen reported an eight-fold increase in profits during the first quarter, driven by improved ground-level repayment rates and enhanced asset quality. The firm's pre-provision operating profit surged by thirty-four percent, while total income jumped twenty-two percent to achieve one thousand seven hundred eighty-four crore. Additionally, assets under management grew by sixteen point four percent, demonstrating a solid influx of new customers.

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Kolkata: CreditAccess Grameen reported an over eight-fold surge in first quarter net profit at Rs 493 crore against Rs 60 crore in the year ago period, riding on improvement in repayment from the ground, better asset quality and steady business growth.

The country's largest non-bank microfinance lender booked a 34% rise in pre-provision operating profit at Rs 873 crore, on 22% rise in total income at Rs 1,784 crore.

The lender's credit cost declined by 63% year-on-year at Rs 213 crore. The gross non-performing assets ratio stood at 2.18% at the end of June, sequentially improved from 3.17%.

Its assets under management grew 16.4% year-on-year to Rs 30,319 crore at the end of June with addition of 2.5 lakh new-to-credit customers, the company said Friday.