Loans

CreditAccess Grameen sees near 20% jump in gross loans

CreditAccess Grameen sees near 20% jump in gross loans
Written by Publishing Team

India’s largest microfinance institution, NBFC-MFI, said its total loan portfolio rose by 19.4 percent year-on-year to Rs 12,180 crore at the end of December 2021 in a reflection of the stabilizing microfinance sector amid the recovery of economic activities before the third wave of COVID-19.

It disbursed 1,485 crore in December, up from 1,237 crore loan made in the previous month, according to provisional figures released by the company.

Its subsidiary Madura Micro Finance, which is in the process of merging itself, saw its total loan portfolio rise by 13.6 per cent to Rs 2,407 crore. The parent company recently injected Rs 250 crore into Madura to ensure its growth before the eventual merger.

These lenders added 90,505 borrowers amongst themselves in December alone versus 59,930 borrowers in November. Cumulatively, 3,50,167 new borrowers have taken out loans since July last year from these two lenders, CreditAccess said in a regulatory filing to the exchanges.

The company’s collection efficiency improved by 95 percent in December compared to 94.3 percent in the previous months. The efficiency of collection in Madura improved to 89 percent from 87 percent during the same period.

However, the pace of business improvement may take a pause due to the rapid spread of the Omicron variant of Covid-19. India Ratings & Research revised its GDP growth forecast by 10 basis points to 9.3 per cent for FY22, but said the economy could rebound very quickly as the restrictions imposed by local and state governments will be less disruptive because the new strain of Covid mostly does not. life threatening.

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