CreditAccess Grameen reports Rs 96 crore profit in Q1

Kolkata: Microfinance firm CreditAccess Grameen has reported 33 per cent rise in net profit at Rs 96 crore for June quarter on Rs 7,619 crore gross loan portfolio, which grew 39 per cent year on year.

The Bengaluru-based firm said its loan growth was primarily backed by 32 per cent addition in borrower base as it expanded in new geographies such as Jharkhand in the first quarter.

The MFI has further expanded its presence in Rajasthan and Gujarat in July.


“We delivered strong growth despite challenging environment faced by NBFC industry. We believe there are significant growth opportunities available for microfinance players with strong balance sheet and non-urban focused business model," said Udaya Kumar Hebbar, managing director of CreditAccess Grameen.

He said that consumption demand in rural markets has dampened while asset-based investments has seen slower growth compared to last year.

"In such testing times, microfinance plays a crucial role by providing timely support to sustain the income generation & livelihood activities of rural households. Hence, our strategy of reaching the unbanked hinterland will continue to drive our business growth in future,” he said.