CreditAccess Grameen sees near 20% raise in gross loans

CreditAccess Grameen sees near 20% raise in gross loans
India's largest NBFC-MFI CreditAccess Grameen said its gross loan portfolio increased 19.4 per cent year-on-year to Rs 12,180 crore at the end of December 2021 in a reflection of the steadying microfinance sector amid recovery in economic activities before the third wave of Covid-19.
It disbursed Rs 1,485 crore in the months of December, higher than Rs 1,237 crore loan given in the preceding month.
Its subsidiary Madura Micro Finance, which is in the process of getting merged with itself, saw gross loan portfolio rising 13.6 per cent to Rs 2,407 crore.
These lenders added 90,505 borrowers between them in December alone against 59,930 borrowers added in November. Cumulatively, 3,50,167 new borrowers took loans since July last year from these two lenders, CreditAccess said in a regulatory filing to the stock exchanges.
The company's collection efficiency improved 95 per cent in December compared with 94.3 per cent in the preceding months. Collection efficiency at Madura improved to 89 per cent from 87 per cent over the same period.
The pace of the business improvement may however take a brief pause due to the rapid spread of the Omicron variant of Covid-19. India Ratings & Research revised its GDP growth projection down by 10 basis points to 9.3% for FY22 but said that the economy may bounce back pretty quickly as the curbs imposed by local and state governments would be less disruptive as the new Covid strain is mostly not life threatening.