CreditAccess Grameen Q2 Results Review


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Q2 FY23 was a quarter in which all operating parameters of CreditAccess Grameen Ltd. were back to pre-Covid levels. Most importantly, collections were at 97% (excluding arrears), net customer base grew 3% QoQ (highest since March 2020) and return on asset touched pre-Covid level of 4%.

Disbursements doubled on sequential basis to Rs 43.7 billion. During Q1 FY23 the same was down 61% QoQ due to process migration as per revised regulatory norms.

CreditAccess Grameen’s net non performing loans and standard restructured book at less than 1% as of September 2022 reinforces our view that the most Covid-related stress is recognised and adequately provided.

Credit cost in Q2 FY23 appears marginally higher at 2.5% as it written-off Rs 1.7 billion.

Negligible legacy stressed asset pool suggests write-offs hereon would be significantly lower than in the recent past and the same would ensure downward trajectory in credit cost in coming quarters.

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