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CreditAccess Grameen November disbursements reach pre-Covid levels

The trend of rising disbursements is in line with the overall growth in the microfinance industry.

CreditAccess Grameen November disbursements reach pre-Covid levels
Giving key business updates, CreditAccess Grameen said its collection efficiency in November was stable at 94.3%, excluding arrears. Collections were stable despite brief period of festivities and unseasonal rains in Tamil Nadu and Karnataka, it said.

CreditAccess Grameen on Thursday said its consolidated disbursements reached pre-Covid levels of Rs 1,505 crore in November, increasing the overall loan book size by 18% on a year-on-year basis to Rs 14,071 crore. The microfinance lender had reported its October disbursements at Rs 1,371 crore.

The trend of rising disbursements is in line with the overall growth in the microfinance industry. According to a report by Microfinance Institutions Network issued on Wednesday, non-banking finance companies and microfinance institutions disbursed Rs 19,672 crore of loans for the quarter ended September, up over twofolds from the corresponding period a year ago.

Giving key business updates, CreditAccess Grameen said its collection efficiency in November was stable at 94.3%, excluding arrears. Collections were stable despite brief period of festivities and unseasonal rains in Tamil Nadu and Karnataka, it said.

On the asset quality front, its portfolio at risk past 90 days, which indicates percentage of total loans that are overdue by over 90 days, stood at 5.6% in November, against 5.5% in October. The asset quality of its arm Madura Micro Finance (MMFL), however, deteriorated, with loans overdue by 90 days increasing to 9.3% as on November from 8.7% in October. The asset quality of MMFL is expected to improve in the months ahead, CreditAccess Grameen said.

The company’s consolidated branch network grew to 1,575 in November and the lender added 59,930 new borrowers in the month. The new borrower addition rate is expected to increase owing to expanded branch network, the company said.

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First published on: 17-12-2021 at 01:15 IST