With a market capitalization of Rs 21,781 crores, the shares of CreditAccess Grameen Limited are currently trading at Rs 1,370.30. The stock’s intra-day high was recorded at Rs 1,378.35 indicating a gain of around 4 percent compared to the previous closing price of Rs 1,327.10.
The company, through a regulatory filing with the Bombay Stock Exchange (BSE) today, announced that it has signed a syndicated ‘social loan’ facility of up to 200 million Dollars and the same qualifies as ‘External Commercial Borrowings’ (ECB) as per the automatic route of the Reserve Bank of India (RBI).
It is the first social loan facility in the Microfinance industry in India and the fourth one from the country. To date, the Company has received USD 160 million in commitments including major contributions of 28 percent from Middle Eastern Banks.
“Being the largest NBFC-MFI, the strength and scalability of the liability profile is paramount in our pursuit of consciously growing our loan portfolio at 20-25% CAGR to cross the INR 50,000 crore mark in the coming four to five years.”, commented Mr. Balakrishna Kamath, Chief Financial Officer of CreditAccess Grameen.
The company has been successful in consistently improving its financial performance with the basic parameters such as the operating revenues moving from Rs 2,742 crores during FY21-22 to Rs 3,545 crores in FY22-23. Moreover, the company’s net profits were on the rise taking a shift from Rs 357 crores to Rs 826 crores.
The profitability metrics, in congruence with the pattern shown above, showed favourable movements with the return on equity (ROE) shifting from 9.12 percent during FY21-22 to 16.17 percent in FY22-23 and the return on capital employed (ROCE) moving from 26.05 percent to 44.89 percent.
According to the shareholding data released for the March 2023 quarter, the Promoters hold a 73.68 percent stake, and Foreign Institutional Investors (FIIs) hold a 9.67 percent stake in the company.
CreditAccess Grameen Limited is engaged in the business of providing financial as well as non-financial products and services. The financial products of the company include family welfare loans, etc, and non-financial products, on the other hand, include SAC workshops, etc. Geographically, the company conducts operations only within India.
Written by Amit Madnani
