INSUBCONTINENT EXCLUSIVE:
ET Intelligence Group: The stock of microfinance lender CreditAccess Grameen (CAGL) continued to hit a 52-week high on Tuesday
notwithstanding the weakness in the broader market ahead of the Union budget slated for Saturday and rising risk of the spread of
coronavirus in China and neighbouring countries.
The stock has gained 11 per cent in one month and 28 per cent in three months to January 28
The benchmark S-P Sensex lost 1.4 per cent and gained 3.3 per cent respectively in the said periods.
The company is promoted by
Netherlands-based CreditAccess Asia, which holds 80 per cent in CAGL
Of the total loan book, over 85 per cent is lent to income generation and enhancement activities through small loans with ticket sizes
increased by 49 per cent annually between FY15 and FY19 to ?7,159 crore
It further increased to ?8,872 crore at the end of December 2019
While its gross non-performing assets (GNPA) as a percentage of total advances is lower compared with some of the other lenders, it
increased to 0.85 per cent in the December quarter from 0.52 per cent in the previous quarter due to floods and external disturbances in
Maharashtra and Karnataka.
The company expects to report ?425-450 crore in net profit for FY20
It has clocked profit of ?304.7 crore in the nine months to December 2019.
The acquisition of Madura Micro Finance having a loan book of
?2,053 crore in November is expected to strengthen its foothold in Tamil Nadu and open new markets including Bihar and Odisha